201130,000 SAssets201228,000Cash$Marketable Securities12,00012,40084,000102,0002,400230,400Accounts receivable66,000InventoryPrepaid expenses168,0002,200276,600Total current assetsGross plant and equipmentLess: accumulated depreciationTotal assets632,000660,000(60,000)(120,000)S 802,400 $ 816,600Liabilities & EquityAccounts payableAccrualsNotes payable2$96,000 S114,00012,00010,00030,00026,000Total current liabilities138,000150,000Long-term debtCommon stockholders' equityTotal liabilities and equity320,000300,000344,400$ 802,400 $ 816,600366,600XZY Company - Income StatementSalesS 1,200,000Cost of goods soldGross profitGeneral and administration920,000280,000$60,000DepreciationTotal operating expensesOperating income60,000120,000160,000Interest expense20,000140,000Earnings before taxesTaxes paid54,200Net income available to common stockholders85,800Cash dividends63,600Change in Retained earnings2$22,200 Objectives: This assignment combines knowledge from your accounting courses as well asrelated information discussed in this class. Upon completion of the assignment, you will be ableto:1. Construct a statement of cash flows based on information obtained from other financialstatements.2. Compute changes in value for all balance sheet items.3. Identify the relationships between key financial statements and interpret your analysisresults.This assignment was created because knowledge of the relationships between financialstatements, along with the ability to interpret each statement, is required for managers to makesound business decisions.Protocols: The assignment must be completed in Excel and you may work with one partner in thesame course section. If you work with a partner, please decide which partner is responsible foruploading the completed spreadsheet to Canvas; both partners should not upload separatespreadsheets. Record all dollar values as whole numbers (e.g., $1,250, not $1,250.00) and recordall percentages with two decimal places (e.g., 1.14%, not 0.01). Make sure the uploaded filecontains:• A descriptive assignment title, both partners' names, and the date of creation, at the top ofthe spreadsheet. (2 points)• A descriptive title for each part of the assignment. Do not simply write "Question 2, Part3, etc." (2 points)Consistent numerical formatting throughout the spreadsheet. (1 points)Note: Spreadsheets are created to aid managers in decision making. To enable the manager toask, "What if I changed this value?", it is imperative that you utilize formulas and functionswhen creating your spreadsheets.Use the information for the XYZ Company that appears below to perform the following tasks.1. Recreate the balance sheet and compute the changes in value for all items (8 points)2. Construct a statement of cash flows (8 points) and interpret the results (4 points).3. What did you learn about the XYZ Company after making these computations (5 points)?

Hi student Since there are multiple questions, we will answer only first question.

2011 30,000 S 2012 28,000 Assets Cash 2$ Marketable Securities 12,000 12,400 Accounts receivable Inventory Prepaid expenses 66,000 168,000 84,000 102,000 2,400 230,400 2,200 276,600 Total current assets Gross plant and equipment Less: accumulated depreciation 632,000 660,000 (60,000) (120,000) Total assets S 802,400 $ 816,600 Liabilities & Equity Accounts payable 96,000 S 114,000 12,000 $ Accruals 10,000 Notes payable 30,000 138,000 26,000 150,000 Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity 320,000 300,000 344,400 S 802,400 $ 816,600 366,600 XZY Company - Income Statement S 1,200,000 920,000 280,000 Sales Cost of goods sold Gross profit General and administration $ 60,000 Depreciation Total operating expenses Operating income 60,000 120,000 160,000

2011 30,000 S 2012 28,000 Assets Cash 2$ Marketable Securities 12,000 12,400 Accounts receivable Inventory Prepaid expenses 66,000 168,000 84,000 102,000 2,400 230,400 2,200 276,600 Total current assets Gross plant and equipment Less: accumulated depreciation 632,000 660,000 (60,000) (120,000) Total assets S 802,400 $ 816,600 Liabilities & Equity Accounts payable 96,000 S 114,000 12,000 $ Accruals 10,000 Notes payable 30,000 138,000 26,000 150,000 Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity 320,000 300,000 344,400 S 802,400 $ 816,600 366,600 XZY Company - Income Statement S 1,200,000 920,000 280,000 Sales Cost of goods sold Gross profit General and administration $ 60,000 Depreciation Total operating expenses Operating income 60,000 120,000 160,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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