In: Accounting
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Using the following financial data construct a balance sheet and income statment.
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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 |