Friday
August 1, 2014

Homework Help: Accounting

Posted by Dave on Sunday, October 1, 2006 at 1:07am.

I'll start with the first part of my problem. This is a long assignment since it is a weekend one.

Part 1: Incomplete Comparative Balance Sheet. The percentage of Increases/decreases are to the side. And Accumulated Depreciation is listed twice. I'm assuming that is right and was meant to be part of the problem b/c that is how the homework has it.
2005 2004

Cash ? 25,000
Account Receivable ? 20,000
Inventory 15,000 ? (40%)
Prepaid Expenses 7,000 5,000 40%
LongTermInvestments 0 10,000(100%)
Land 60,000 60,000 0% Buildings 100,000 100,000 0%
Accum.Depreciation(44,000) (40,000) 10%
Equipment 68,000 40,000 70%
Accum.Depreciation(12,000) (30,000)(60%
Intangible Assets 44,000 0 100%
Total Assets ? ?

Accounts Payable 12,000 ? 20%
AccuredExensesPayable 8,000 10,000(20%)
Bonds Payable 0 ? (100%)
CommonStock, $1 Par Value ? 35,000
AdditionalPaid-in Capital ? 44,000

Retained earnings ? 50,000
Total Debt and Equity ? ?

Part two: Incomplete Income Statement

Net Sales Revenue 400,000
Cost of Goods Sold ?
Gross Profit ?
Operating Expenses:
Selling Expenses 44,500
Admin Expenses 58,000
Depreciation Expenses 16,000
Amortization Expense 6,000
124,500
Operating Income ?
Misc Items
Gains and Revenues:
Gain on Sale of Equipement 5,000
Interest Income 1,000
6,000
Losses and Expenses:
Loss on Sale of Investments (3,000)
Interest Expense (7,000)
(10,000)
(4,000)
Income Before Income Tax Expense ?
Income Tax Expense ?
Net Income ?

The following are Notes for the Financial Statement. I'm not sure if they're for figuring out how to filling in the balance and income statements or are strictly for doing the statement of cash flow.

1. Equipement was sold during the year. Its costs was $40,000 and its book value at the time of sale was $10,000.
2. On May 1, 2005, the company issued 6,000 shares of common stock at $2.50 a share.
3. On July 1, 2005, the company converted all outstanding bonds into common stock at face value.
4. All merchandise sales are on credit, accounts payable relates to vendor transactions, accured expenses payable are wages owed to the workers.
5. 2005 Selling expenses include $16,000 of salaries, and $18,000 of wages are included in admin expenses.

This part I know is meant to help us figure out the Balance sheet and Income statement. The problem I am having is reversing them.

2005 Current Ratio= 3:1
2005 Acid-Test Ration = 1.9:1
2005 Accounts Recievable Turnover = 16 times
2005 Net Income = 16.25%
2005 Gross Profit Ratio= 62.5%
2004 Debt to Assets = 40%
2004 Current Ration = 3.75:1

I'm a bit over whelmed with this. Any help would be appreciated.

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