2 of 3 Excitingpart's Closet Statement of Financial Position As of Nov. 30, 2015 Dec. 31, 2014 270,000 500,000 400,000 850,000 2020000 Cash 60,000 740,000 Accounts Receivable Inventory Machinery 600,000 800,000 2200000 Total Assets Accounts Payable Salaries Payable 400,000 150,000 400,000 200,000 1,600,000 1800000 2200000 500,000 150,000 500,000 200,000 1,320,000 Total Liabilities Capital Stock Accumulated Profit Total Equity 1520000 2020000 Total Liabilities and Equity Excitingpart's Closet Income Statement For the years ended Nov. 30, 2015 Dec. 31, 2014 800,000 300,000 100,000 400000 120,000 280000 Sales 600,000 225,000 105,000 270000 Cost of Goods Sold Operating Expenses Operating Income Machinery Net Income 81,000 189000 Questions: 1. What's wrone with Excitinena (uournd 4. What was the payable turnover for Excitingpart's Closet? How did it affect the problem? (Including computation) 5. What factors lead to the low cash balance for Excitingpart's Closet? 6. Is Excitingpart's Closet profitable? (Including computation) 7. Is the company heavily financed by debt or equity? (Including computation) 8. Compute the horizontal and vertical analysis. 9. What will be your recommendations/changes that must be done to the operations of Excitingpart's Closet? 10. Summarize your analysis.
2 of 3 Excitingpart's Closet Statement of Financial Position As of Nov. 30, 2015 Dec. 31, 2014 270,000 500,000 400,000 850,000 2020000 Cash 60,000 740,000 Accounts Receivable Inventory Machinery 600,000 800,000 2200000 Total Assets Accounts Payable Salaries Payable 400,000 150,000 400,000 200,000 1,600,000 1800000 2200000 500,000 150,000 500,000 200,000 1,320,000 Total Liabilities Capital Stock Accumulated Profit Total Equity 1520000 2020000 Total Liabilities and Equity Excitingpart's Closet Income Statement For the years ended Nov. 30, 2015 Dec. 31, 2014 800,000 300,000 100,000 400000 120,000 280000 Sales 600,000 225,000 105,000 270000 Cost of Goods Sold Operating Expenses Operating Income Machinery Net Income 81,000 189000 Questions: 1. What's wrone with Excitinena (uournd 4. What was the payable turnover for Excitingpart's Closet? How did it affect the problem? (Including computation) 5. What factors lead to the low cash balance for Excitingpart's Closet? 6. Is Excitingpart's Closet profitable? (Including computation) 7. Is the company heavily financed by debt or equity? (Including computation) 8. Compute the horizontal and vertical analysis. 9. What will be your recommendations/changes that must be done to the operations of Excitingpart's Closet? 10. Summarize your analysis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2 of 3
Excitingpart's Closet
Statement of Financial Position
As of
Nov. 30, 2015 Dec. 31, 2014
Cash
60,000
740,000
270,000
500,000
Accounts Receivable
Inventory
Machinery
Total Assets
600,000
400,000
800,000
2200000
850,000
2020000
Accounts Payable
Salaries Payable
400,000
150,000
400,000
200,000
1,600,000
500,000
150,000
500,000
200,000
1,320,000
1520000
2020000
Total Liabilities
Capital Stock
Accumulated Profit
Total Equity
1800000
Total Liabilities and Equity
2200000
Excitingpart's Closet
Income Statement
For the years ended
Nov. 30, 2015 Dec. 31, 2014
600,000
225,000
105,000
270000
Sales
Cost of Goods Sold
Operating Expenses
Operating Income
Machinery
Net Income
800,000
300,000
100,000
400000
120,000
280000
81,000
189000
Questions:
1. What's wrone with Excitinonart's Closer?
u Ion)
4. What was the payable turnover for Excitingpart's Closet? How did it affect the problem? (Including
computation)
5. What factors lead to the low cash balance for Excitingpart's Closet?
6. Is Excitingpart's Closet profitable? (Including computation)
7. Is the company heavily financed by debt or equity? (Including computation)
8. Compute the horizontal and vertical analysis.
9. What will be your recommendations/changes that must be done to the operations of Excitingpart's
Closet?
10. Summarize your analysis.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education