41) After taking a look at your resulting financial statement below, how would you assess the overall financial position of your company? Using any 3 financial ratios, provide commentary on the profitability, liquidity and solvency of this company. Provide a recommendation on how the company can improve its financial position where needed.
41) After taking a look at your resulting financial statement below, how would you assess the overall financial position of your company? Using any 3 financial ratios, provide commentary on the profitability, liquidity and solvency of this company. Provide a recommendation on how the company can improve its financial position where needed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Clipboard
Formatting Table
Font
Alignment
Number
Styles
A78
which can be considered satisfactory.
A.
B
100 DO NOT CHANGE ANYTHING IN THE FINANCIAL STATEMENTS. RESULTS WILL AUTOMATICALLY POPULATE.
H.
D
F
101
102
103
Company Ltd.
Balance Sheet
O Company Ltd.
Income Statement
At December 31, 2021
104
For the Quarter Ending December 31, 2021
105 ASSETS
106 Current Assets:
REVENUE
107 Cash
Sales Revenue
24
800,000.00
80,010.56
Sales Returns
3,458.00
108 Accounts Receivable
109 Allowance for Doubtful Accounts
20,500.00
Sales Discounts
925.00
$4
615.00
Net Sales
795,617.00
110 Net Accounts Receivable
111 Inventory
112 Cash Equivalents
19,885.00
125,000.00
670,617.00
63,000.00
Inventory Used
113 Total Current Assets
5,986.75
Gross Profit
%24
168,882.31
114
115 Long-Lived (Fixed) Assets:
116 Buildings
117 Less Accumulated Depreciation Buildings
EXPENSES
Sales and Admin Expenses:
225,000.00
2$
Advertising
25,000.00
195,840.00
Rent
90,000.00
118 Net Book Value Buildings
2$
29,160.00
Office Supplies
8,000.00
119
120 Property and Equipment
121 Less Accumulated Depreciaton P&E
122 Net Book Value P&E
123
124 Total Long-Lived (Fixed) Assets
125
126 TOTAL ASSETS
Wages
156,000.00
316,000.00
Total S & A Expenses
279,000.00
142,595.00
173,405.00
Operating Income
391,617.00
24
202,565.00
Other Revenue & Expenses
Rental Revenue
24
3,000.00
371,447.31
Irest Expense
656.25
127
Depreciation Expense
15,000.00
128 LIABILITIES
Income Tax Expense
39,161.70
129 Current Liabilities:
130 Accounts Payable
7,500.00
NET INCOME (PROFIT/LOSS)
339,799.05
%24
16,505.00
131 Unearned Revenue
132 Accrued Interest Payable
133 Notes Payable
134 Total Current Liabilities
2$
1,750.00
75,000.00
%24
100,755.00
135
136 Long-Term Liabilities
137 Loan Payable
138 Bonds Payable
139 Total Long-Term Liabilities
3,000.00
24
60,000.00
63,000.00
140
163,755.00
141 TOTAL LIABILITIES
142
143
144 EQUITY
145
24
200,000.00
146 Common Shares
147 Retained Earnings
148
149 TOTAL EQUITY
7,692.31
207,692.31
150
371,447.31
151 TOTAL LIABILITIES AND EQUITY
152
153

Transcribed Image Text:81 4H) Now consider the position of your company if cash was $3,000?
82 What would your Quick Ratio be?
83 Explain what this means, how this impacts your financial position, and what can be done to improve the situation if improvement is necessary:
84
85
86
87
88
89
90
91 41) After taking a look at your resulting financial statement below, how would you assess the overall financial position of your company?
92 Using any 3 financial ratios, provide commentary on the profitability, liquidity and solvency of this company. Provide a recommendation on how the company can improve its financial position where needed.
93
94
95
96
97
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