Question

*Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys.

Problem 2-1: Preparing Financial Statements

Information below is for Warner Manufacturing, Inc. for the year ended December 31, 20x1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated. Using the information below: 1. Prepare an income statement with the proper title 2. Prepare end of year balance sheet with the proper title 3. Calculate net working capital 4. Calculate the debt ratio *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. DATA Depreciation expense 66,000 Cash 220,000 Long-Term Debt 330,000 Net Sales 615,000 Accounts payable 102,000 Marketing and general and administrative expenses 79,000 Buildings and Equipment 895,000 Notes payable 7,5000 Accounts receivable 156,000 Interest expense 4,750 Accrued expenses 7,900 Common Stock 289,000 Cost of Goods sold 297,000 Inventory 99,300 Taxes 67,300 Accumulated Depreciation -26,3000 Prepaid expenses 14,500 Taxes payable 55,000 Retained earnings 262,900

Answer 1