Financial Reporting And Analysis Iit Assignment

1051 words - 5 pages

Assignment 1
1.1 Problem
Balance sheet of CHARLES COMPANY as of Dec 31
( All the values in $)
Assets
Liabilities and owner’s Equity
Current Assets
Current Liabilities
Cash ----------------- 12,000
Bank loan ------------- 40,000
Inventory ----------------- 95,000
Other items (comes as assets ) ----- 13,000
Total current assets ---------------- 120,000
Total current liabilities ---- 40,000
Noncurrent assets ------------------- 0
Noncurrent liabilities ---- 0
Total liabilities --------- 40,000
Owner’s Equity
Owner’s equity------ 80,000
Total Assets --------------------- 120,000
Total liabilities and
owner’s equity ------- 120,000
Total Assets = Current Assets + Noncurrent Assets
Total liabilities = Current Liabilities + Noncurrent liabilities
Assets = Liabilities + Owner’s equity
Problem 1.2
Microtech Company Balance sheet
( all the values in $ )
Year 1
Year 2
Year 3
Year 4
Current Assets
113,624
90,442
85,124
69,090
Noncurrent Assets
410,976
198,014
162,011
151,021
Total Assets
524,600
288,456
247,135
220,111
Current liabilities
56,142
40,220
15,583
17,539
Noncurrent liabilities
240,518
71,297
60,100
30,222
Paid-in capital
214,155
173,295
170,000
170,000
Retained earnings
13,785
(3,644)
1,452
2,350
Total liabilities and owner’s equity
524,600
288,456
247,135
220,111
Assets = Liabilities + Owners’ equity
Current assets + Noncurrent assets = Total assets
Current liabilities + Noncurrent liabilities = Total liabilities
Paid-in capital + Retained earnings = Owners’ equity
Problem 1.3
Income statements for Astrotech Company
( all the values in $ )
Year 1
Year 2
Year 3
Year 4
Sales
12,011
11,968
11,545
10,000
Cost of goods sold
3,011
2,922
2,886
2,500
Gross margin
9,000
8,976
8,659
7,500
Other expenses
6,201
6,429
6,296
5,300
Profit before taxes
2,799
2,547
2,363
2,200
Tax expense
1,120
1,019
945
860
Net income
1,679
1,528
1,418
1,300
Cost of goods sold/Sales
0.25068687
0.25
0.249978346
Gross margin/sales
0.74931313
0.75
0.750021654
Other expenses/Sales
0.516276746
0.537182487
0.545344305
Profit before tax/sales
0.233036383
0.212817513
0.20467735
Taxes/Sales
0.093247856
0.085143717
0.081853616
Net income/sales
0.139788527
0.127673797
0.122823733
Assumptions for year 4
Gross margin/sales =0.75
Cost of goods sold/sales =0.25
Other expenses/sales=0.53
Profit before tax/sales =0.22
Taxes/sales =0.086
Net income/sales =0.13
Gross margin = Sales - Cost of goods sold
Profit before taxes = Gross margin - Other expenses
Net income = Profit before taxes - Tax expense
Problem 1.4
Transactions made by Acme Consulting for the month of July
( all the values in $ )
Cash + Accounts + Supplies + Equipment = Accounts + Owner’s + Description of
Receivable Inventory Payable Equity Transaction
1. +20,000 ...

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