Question

In: Accounting

Using the data presented below for Blue Sky Inc.: 2017 2016 Sales $7,550,000 $6,150,000 Cost of...

  1. Using the data presented below for Blue Sky Inc.:

2017

2016

Sales

$7,550,000

$6,150,000

Cost of Goods

5,750,000

4,550,000

Depreciation

120,000

100,000

Selling and G&A Expenses

820,000

730,000

Fixed Expenses

200,000

200,000

Lease Expense

150,000

150,000

Interest Expense

350,000

300,000

Tax Rate

40.00%

40.00%

Shares Outstanding

100,000

80,000

Cash

108,000

50,000

Marketable Securities

150,000

100,000

Accounts Receivable

450,000

350,000

Inventory

1,250,000

850,000

Prepaid Expenses

120,000

40,000

Plant & Equipment

5,350,000

4,800,000

Accumulated Depreciation

410,000

290,000

Long Term Investments

450,000

360,000

Accounts Payable

420,000

380,000

Notes Payable

150,000

100,000

Accrued Expenses

150,000

100,000

Other Current Liabilities

200,000

180,000

Long-term Debt

2,900,000

2,500,000

Common Stock

2,500,000

2,000,000

Additional Paid-in-Capital

600,000

500,000

Retained Earnings

548,000

500,000

Create Blue Sky’s income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Improve the readability of the data by using the format explained on page 49, so that Excel will display the numbers as if they had been divided by 1,000. Make the appropriate note on the heading of each financial statement. Create a common-size income statement and balance sheet for 2017 and 2016. These statements should be created on a separate worksheet with all formulas linked directly to the income statement and balance sheet.

Solutions

Expert Solution

Common size statement is prepared to make trend analysis easy and comfortable. All elements are converted in percentage on the basis one common element. In income statement, all elements are proportioned on the basis of revenues.

In balance sheet, all elements are proportioned on the basis of total assets.


Related Solutions

Using the data presented below for Blue Sky Inc.: 2017 2016 Sales $7,550,000 $6,150,000 Cost of...
Using the data presented below for Blue Sky Inc.: 2017 2016 Sales $7,550,000 $6,150,000 Cost of Goods 5,750,000 4,550,000 Depreciation 120,000 100,000 Selling and G&A Expenses 820,000 730,000 Fixed Expenses 200,000 200,000 Lease Expense 150,000 150,000 Interest Expense 350,000 300,000 Tax Rate 40.00% 40.00% Shares Outstanding 100,000 80,000 Cash 108,000 50,000 Marketable Securities 150,000 100,000 Accounts Receivable 450,000 350,000 Inventory 1,250,000 850,000 Prepaid Expenses 120,000 40,000 Plant & Equipment 5,350,000 4,800,000 Accumulated Depreciation 410,000 290,000 Long Term Investments 450,000 360,000...
The current organizational structure of Blue Sky Company, a manufacturer of small sailboats, is presented below. Presented below:
The current organizational structure of Blue Sky Company, a manufacturer of small sailboats, is presented below. Presented below: Required a. What operational problems (e.g., inefficiency, errors, or fraud) do you think Blue Sky could experience because of this structure? b. Draw a new diagram reflecting an improved structure that solves the problems you identified.  If necessary, you may add up to two new positions.  
Transactions of Sky Company for the month of December 2017 are presented below: 1. The owner...
Transactions of Sky Company for the month of December 2017 are presented below: 1. The owner invested $400,000 to start his business. 2. Purchased equipment for $48,000, paying $12,000 cash and the remaining amount will be paid after 10 days. 3. Purchased office supplies on credit for $3,200. 4. Invested additional $160,000 cash in the business. 5. Services billed to customers amounted to $20,000. 6. Received a bill for $1,200 for advertising of the current month. 7. Paid $10,000 as...
The following data is related to sales and production for Blue sky company for last year....
The following data is related to sales and production for Blue sky company for last year. Selling price per unit $140 Variable manufacturing costs per unit $62 Variable selling and administrative expenses per unit $6 Fixed manufacturing overhead (in total) $32,000 Fixed selling and administrative expenses (in total) $6000 Units produced during the year 2000 Units sold during year 900 a) Using variable costing, what is the operating income for last year? b) Management is considering the following courses of...
Condensed financial data of Cullumber Company for 2017 and 2016 are presented below. CULLUMBER COMPANY COMPARATIVE...
Condensed financial data of Cullumber Company for 2017 and 2016 are presented below. CULLUMBER COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,830 $1,130 Receivables 1,770 1,290 Inventory 1,620 1,920 Plant assets 1,940 1,680 Accumulated depreciation (1,190 ) (1,170 ) Long-term investments (held-to-maturity) 1,300 1,410 $7,270 $6,260 Accounts payable $1,220 $910 Accrued liabilities 210 260 Bonds payable 1,420 1,530 Common stock 1,890 1,710 Retained earnings 2,530 1,850 $7,270 $6,260 CULLUMBER COMPANY INCOME STATEMENT FOR...
Condensed financial data of Oriole Company for 2017 and 2016 are presented below. ORIOLE COMPANY COMPARATIVE...
Condensed financial data of Oriole Company for 2017 and 2016 are presented below. ORIOLE COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,830 $1,180 Receivables 1,710 1,320 Inventory 1,590 1,920 Plant assets 1,890 1,710 Accumulated depreciation (1,220 ) (1,190 ) Long-term investments (held-to-maturity) 1,320 1,440 $7,120 $6,380 Accounts payable $1,190 $890 Accrued liabilities 210 260 Bonds payable 1,400 1,580 Common stock 1,940 1,660 Retained earnings 2,380 1,990 $7,120 $6,380 ORIOLE COMPANY INCOME STATEMENT FOR...
Condensed financial data of Waterway Company for 2017 and 2016 are presented below. WATERWAY COMPANY COMPARATIVE...
Condensed financial data of Waterway Company for 2017 and 2016 are presented below. WATERWAY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,780 $1,170 Receivables 1,760 1,280 Inventory 1,620 1,880 Plant assets 1,910 1,670 Accumulated depreciation (1,210 ) (1,160 ) Long-term investments (held-to-maturity) 1,330 1,440 $7,190 $6,280 Accounts payable $1,230 $920 Accrued liabilities 210 250 Bonds payable 1,370 1,560 Common stock 1,920 1,680 Retained earnings 2,460 1,870 $7,190 $6,280 WATERWAY COMPANY INCOME STATEMENT FOR...
Condensed financial data of Waterway Company for 2017 and 2016 are presented below. WATERWAY COMPANY COMPARATIVE...
Condensed financial data of Waterway Company for 2017 and 2016 are presented below. WATERWAY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash       $1,780 $1,170 Receivables       1,760 1,280 Inventory       1,620 1,880 Plant assets       1,910 1,670 Accumulated depreciation       (1,210 ) (1,160 ) Long-term investments (held-to-maturity)       1,330         1,440 $7,190         $6,280                         Accounts payable       $1,230 $920 Accrued liabilities       210 250 Bonds...
Condensed financial data of Monty Company for 2017 and 2016 are presented below. MONTY COMPANY COMPARATIVE...
Condensed financial data of Monty Company for 2017 and 2016 are presented below. MONTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,820 $1,150 Receivables 1,780 1,310 Inventory 1,600 1,930 Plant assets 1,930 1,710 Accumulated depreciation (1,200 ) (1,160 ) Long-term investments (held-to-maturity) 1,320 1,400 $7,250 $6,340 Accounts payable $1,190 $880 Accrued liabilities 190 270 Bonds payable 1,430 1,520 Common stock 1,900 1,730 Retained earnings 2,540 1,940 $7,250 $6,340 MONTY COMPANY INCOME STATEMENT FOR...
Condensed financial data of Buffalo Company for 2017 and 2016 are presented below. BUFFALO COMPANY COMPARATIVE...
Condensed financial data of Buffalo Company for 2017 and 2016 are presented below. BUFFALO COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,780 $1,120 Receivables 1,750 1,300 Inventory 1,590 1,940 Plant assets 1,940 1,670 Accumulated depreciation (1,190 ) (1,140 ) Long-term investments (held-to-maturity) 1,300 1,400 $7,170 $6,290 Accounts payable $1,220 $880 Accrued liabilities 190 250 Bonds payable 1,380 1,570 Common stock 1,920 1,730 Retained earnings 2,460 1,860 $7,170 $6,290 BUFFALO COMPANY INCOME STATEMENT FOR...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT