Question

Please don't answer

Using the following financial data construct a balance sheet and income statment.

Expenses and Income are Monthly Stocks Account 12,000 Salary 1 5,500 Automobile 1 30,000 Utilities 350 Automobile 1 Loan Balance -18,000 Credit Card Balance -9,000 Groceries 400 Contributions to Savings 300 Mortgage (P&I) Only 1,150 CD (14 month maturity) 3,000 Automobile 1 Payment 300 Savings Account 11,000 Mortgage Balance -230,000 House Property Taxes 450 Salary 2 2,500 House 310,000 401(k) Employer Match 250 401(K) Savings Contribution 300 Monthly Income and FICA 1,100 Credit Card Payment 450 Homeowners Insurance 200 401(K) Balance 30,000

Answer 1

1. Category	2012		2013		%
Current assets	7000000	46.67%	9000000	60.00%	Increase
Total fixed assets	8000000	53.33%	6000000	40.00%	Decrease
Total assets	15000000	100.00%	15000000	100.00%
Current liabilities	3000000	20.00%	1000000	6.67%	Decrease
Long term debt	4000000	26.67%	4000000	26.67%	Same
Owner’s equity	8000000	53.33%	10000000	66.67%	Increase
Total liabilities & owner’s equity	15000000	100.00%	15000000	100.00%
Current ratio will increase --liquidity position has improved
Equity participation is more ,whereas, debt funding % remains the same.

2. Salaries		42000
Interest Income		150
Dividend Income		190
Total Income		42340
Less: Expenses:
Mortgage payment	7980
Food	2400
Transportation	1200
Automobile payment	3060
Clothes & personal	2000
Student loan payment	1700
Propert taxes	1100
Utilities	3000
Insurance	2100
Income taxes	9700
Recreation & vacation	2000	36240
Family’s disposable income		6100

3. Statement of financial position
Assets		Liabilities
Cash accounts:		Student loan balance	6000
Cash	50	Automobile loan balance	12000
Checking account	2500	Credit card balance	4000
Savings account	5850	Mortgage loan balance	99000
Savings	5800	Net woth (Bal.fig.)	40800
Investments:
Stocks & bonds	2600
401(K) retirement a/c	15000
Assets for use:
Residence	110000
Automobile	12000
Furniture,clothing Jewelry	8000
	161800		161800

4.     Income statement
Net sales		500000
Less: COGS		250000
Gross profit		250000
Less: Operating expenses:
Salaries	100000
Rent	24000
Utilities	25000
Payroll taxes	25000
Insurance	12000	186000
Operating Income		64000
Less: Non-operating expense
Interest expense		5450
Net profit		58550

5. Horizontal/trend analysis
	2012	2013	Horizontal Analysis(2013-2012)/2012
Current assets	7000000	9000000	28.57%	Increase
Total fixed assets	8000000	6000000	-25.00%	Decrease
Total assets	15000000	15000000	0.00%
Current liabilities	3000000	1000000	-66.67%	Decrease
Long-term debt	4000000	4000000	0.00%	Same
Owner’s equity	8000000	10000000	25.00%	Increase
Total liabilities & owner’s equity	15000000	15000000	0.00%
Leads to same conclusion as Vertical analysis