In: Accounting
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.
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.