Acctg Problems- financial analysis?

  • Thread starter Thread starter Esmairah
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Esmairah

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FILL IN THE MISSING FIGURE BY RECONSTRUCTING THE FINANCIAL STATEMENTS

BALANCE SHEET
Current Asset:
Cash & cash equivalents _____
Market securities 50,000
Accounts receivable, net ______
Inventories ______
Noncurrent Assets:
PPE,net ______
Total Assets ________-

Liabilities & Stockholder's Equity

Current liabilities:
Accounts payable ______
Noncurrent liabilities:
Bonds payable, 12.5 % ______
Total liabilities ______

Stockholder's equity:
Common Stock 500,000
Retained Earnings 300,000
Total Stockholder's equity 800,000
TOTAL LIABILITIES & Stockholder's equity _________

INCOME STATEMENT

Net sales ______
Cost of sales ______
Gross margin 25,000
Operating expense ______
Operating income ______
Other exp.:
Interest expense _______
Net income before taxes ______
Income tax (35%) ______
Net income _______


Additional data:
1. Operating expenses were 15% of net sales
2. Acid-test was 1.30:1.00
3. Times interest earned was 6 times
4. Gross margin was 35% of net sales
5. The age of receivables was 36 days. Beginning accounts receivable was 160,000. use 360 days year.
6. Inventory turnover was 4 times. Beginning inventory amounted to 250,000.
7. Total debt to stockholder's equity was .80:1.00
 
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