Liabilities and Capital Amounts Percent of net sales Total Liabilities and Capital 2,675,250 100.0 Accounts Payable 96,500 3.6 Sale Tax Payable 3,950 0.14 Payroll Tax Payable 15,840 0.59 Accrued Wages Payable 0 — Unearned Revenue 0 — Short-Term Notes Payable 0 — Short-Terms Loan Payable 0 — Total Current Liabilities 116,290 4.3 Long Term Notes Payable 630,000 23.5 Total Long Term Abilities 630,000 23.5 Total Liabilities 746,290 27.9 Owner Equity 746,290 27.9 Net Profit 1,182,670 44.2 Total capital 1,928,960 72.1 Vertical Analysis of Income Statement Revenue: Gross Sales 10,804,000 1.0 Less: Sales Returns and Allowances 7,800 7.2 Net Sales 10,796,200 100.0 Assets Amounts Percent of net sales Cost of Goods Sold: Beginning Inventory 467,890 4.3 Add: Purchases 3,752,891 34.8 Freight In 165,010 1.5 Direct Labor 3,769,591 34.9 Indirect Expenses 748,539 6.9 Less: Ending Inventory 429,090 4.0 Cost of Goods Sold 8,474,831 78.5 Gross Profit 2,321,369 21.5 Expenses: Advertising 263,000 2.4 Amortization 2,700 2.5 Bad Debts 2,300 2.1 Bank Charges 19,258 .1 Charitable Contributions 5,000 4.6 Bonuses 65,000 .6 Systems & Network Contract 82,000
A shareholders role is to invest money into the business to ensure that it is running efficiently and the way it should be running. They are interested in a good return in investment and how much profit the business makes. They mainly care about how much profit that is made by the organisation/business. Also, the other main thing that shareholders might want is to see their share of profit increasing and the value of their business rising. They influence and impact the business because the business may need money for it to keep running.
QUESTIONS 1. Table 1 contains the complete cash flow analysis based on GP Manufacturing’s basic information. Explain the inputs into 1) the net initial investment outlay at year 0, 2) the depreciation tax savings in each year of the project’s economic life, and 3) the project’s incremental cash flows? 1. Net initial investment outlay is $302,040.
= $62,200 C. What is Anderson Company’s total owners equity? = $88,200 D. What is Anderson Company’s debt to equity ratio? = 0.70 to $1 Question 5: Farwell Company has the following information from its most fiscal year. Use the relevant information to determine the net income (loss) for the period. A.
Our Total Current Liabilities are as follows: Accounts Payable 96,500 Sales Tax Payable 3,950 Payroll Tax Payable 15,840 and our Total Long Term Liabilities are the following: Long Term Notes Payable 630,000 Therefore, the Total Liabilities we have is $ $746,290 and our Total Assets is $2,675,250. 746,290 / 2,675,250 = 0.27 or 27%. The Acid Test Ratio or Quick Ratio for the company is computed as follows: Cash $1,430,000 Accounts Receivable $86,000 Short Term Investment $0 = $1,516,000 Current Liabilities $116,290 $1,516,000/$116,290 = 13.036 or 13.07 With this result, our financial statement is showing that our company can immediately convert a portion of our assets into cash to pay our short term debts. The Inventory Turnover of the company is computed as follows: Cost of Goods Sold $8,474,831 Less: Ending Inventory $429,090 $8,474,831/$429,090 = 19.75 or 19.8 times The Receivables Turnovers of the company is computed as follows: Total Net Sales $10,796,200 Accounts Receivable $86,000 $10,796,200/$86,000 = 125.5 times MY SHARE OF THE MEMO This memo is to discuss the liquidity ratio that was performed recently in regards to Kudler Fine Foods. The liquidity ratio that was performed indicated that the amount of the company’s
Financial Reporting Problem - Part II ACC/290 Abstract This week’s essay is a continuation of last week’s topic: Financial Reporting of Wal-Mart Corporation. The topics covered will analyze the information contained in Wal-Mart’s balance sheet and income statement and discuss Wal-Mart’s assets listed under the company’s current assets list and whether or not they them in the proper order. Also covered is how these assets get classified. Breaking down these documents into the cash equivalents, the company’s total current liabilities at the end of its most recent annual reporting period compared to their total current liabilities at the end of the previous annual reporting period. By placing further consideration on
In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. Using the corporate tax rate table, determine how much tax Willow Corp. will pay for year 3. Answer: $4,500. Description (1) Year 3 taxable income $100,000 (2) Year 1 NOL carryforward ($30,000) (3) Year 2 NOL carryforward ($40,000) (4) Taxable income reported 30,000 (1) - (2) -
Employees can use this statement to estimate if the company will be able to afford compensation. Externally, investors and creditors can utilize a company’s cash flow statements to assess the liquidity position of a company and estimate the financial strength of the organization (SEC,
They highlight how effectively the profitability of a company is managed. These ratios are important for investors and lenders to see how the company is operating and handling their assets. The ability to pay back debts and bills shows how financially healthy a company
E 21–4: Summary entries for cash received from customers LO21–3 For each of the three independent situations below, prepare journal entries that summarize the selling and collection activities for the reporting period in order to determine the amount of cash received from customers and to explain the change in each account shown. All dollars are in millions. Situation 1 Sales | $200 | Received on account | $0 | Cash received | $200 | Summary Entry 1 Description | Debit | Credit | Cash | $200 | | Sales Revenue | | $200 | Situation 2 Sales | $200 | Received on account | $10 | Cash received | $190 | Summary Entry 2 Description | Debit | Credit | Cash (received from customers) | $190 | |