99 FINANCIAL STATEMENTS 100 DO NOT CHANGE ANYTHING IN THE FINANCIAL STATEMENTS. RESULTS WILL AUTOMATICALLY POPULATE. 101 Company Ltd. Balance Sheet David Kamenar Company Ltd. 102 Income Statement 103 104 At December 31, 2021 For the Quarter Ending December 31, 2021 105 ASSETS 106 Current Assets: 107 Cash 108 Accounts Receivable 109 Allowance for Doubtful Accounts 110 Net Accounts Receivable 111 Inventory 112 Cash Equivalents 113 Total Current Assets REVENUE Sales Revenue 800,000.00 80,010.56 Sales Returns 3,458.00 $ 20,500.00 Sales Discounts 24 925.00 615.00 Net Sales 24 795,617.00 2$ 19,885.00 2$ 63,000.00 Inventory Used 125,000.00 670,617.00 5,986.75 168,882.31 Gross Profit $4 114 EXPENSES Sales and Admin Expenses: 115 Long-Lived (Fixed) Assets: 116 Buildings 117 Less Accumulated Depreciation Buildings 118 Net Book Value Buildings 225,000.00 Advertising 2$ 25,000.00 $4 195,840.00 Rent 90,000.00 $4 29,160.00 Office Supplies 8,000.00 Wages Total S& A Expenses 156,000.00 119 120 Property and Equipment 121 Less Accumulated Depreciaton P&E 316,000.00 279,000.00 142,595.00 173,405.00 Operating Income 122 Net Book Value P&E 123 124 Total Long-Lived (Fixed) Assets 125 391,617.00 202,565.00 Other Revenue & Expenses Rental Revenue 24 3,000.00 371,447.31 Interest Expense 24 656.25 126 TOTAL ASSETS Depreciation Expense Income Tax Expense $4 $4 15,000.00 127 128 LIABILITIES 39,161.70 129 Current Liabilities: 2$ 7,500.00 NET INCOME (PROFIT/LOSS) 339,799.05 130 Accounts Payable 16,505.00 131 Unearned Revenue 132 Accrued Interest Payable 133 Notes Payable 134 Total Current Liabilities 1,750.00 75,000.00 100,755.00 135 136 Long-Term Liabilities 137 Loan Payable 138 Bonds Payable 139 Total Long-Term Liabilities 140 141 TOTAL LIABILITIES %24 3,000.00 60,000.00 63,000.00 163,755.00 142 143 144 EQUITY 145 146 Common Shares 147 Retained Earnings 148 149 TOTAL EQUITY %24 200,000.00 %24 7,692.31 207,692.31 150 371,447.31 151 TOTAL LIABILITIES AND EQUITY 152
99 FINANCIAL STATEMENTS 100 DO NOT CHANGE ANYTHING IN THE FINANCIAL STATEMENTS. RESULTS WILL AUTOMATICALLY POPULATE. 101 Company Ltd. Balance Sheet David Kamenar Company Ltd. 102 Income Statement 103 104 At December 31, 2021 For the Quarter Ending December 31, 2021 105 ASSETS 106 Current Assets: 107 Cash 108 Accounts Receivable 109 Allowance for Doubtful Accounts 110 Net Accounts Receivable 111 Inventory 112 Cash Equivalents 113 Total Current Assets REVENUE Sales Revenue 800,000.00 80,010.56 Sales Returns 3,458.00 $ 20,500.00 Sales Discounts 24 925.00 615.00 Net Sales 24 795,617.00 2$ 19,885.00 2$ 63,000.00 Inventory Used 125,000.00 670,617.00 5,986.75 168,882.31 Gross Profit $4 114 EXPENSES Sales and Admin Expenses: 115 Long-Lived (Fixed) Assets: 116 Buildings 117 Less Accumulated Depreciation Buildings 118 Net Book Value Buildings 225,000.00 Advertising 2$ 25,000.00 $4 195,840.00 Rent 90,000.00 $4 29,160.00 Office Supplies 8,000.00 Wages Total S& A Expenses 156,000.00 119 120 Property and Equipment 121 Less Accumulated Depreciaton P&E 316,000.00 279,000.00 142,595.00 173,405.00 Operating Income 122 Net Book Value P&E 123 124 Total Long-Lived (Fixed) Assets 125 391,617.00 202,565.00 Other Revenue & Expenses Rental Revenue 24 3,000.00 371,447.31 Interest Expense 24 656.25 126 TOTAL ASSETS Depreciation Expense Income Tax Expense $4 $4 15,000.00 127 128 LIABILITIES 39,161.70 129 Current Liabilities: 2$ 7,500.00 NET INCOME (PROFIT/LOSS) 339,799.05 130 Accounts Payable 16,505.00 131 Unearned Revenue 132 Accrued Interest Payable 133 Notes Payable 134 Total Current Liabilities 1,750.00 75,000.00 100,755.00 135 136 Long-Term Liabilities 137 Loan Payable 138 Bonds Payable 139 Total Long-Term Liabilities 140 141 TOTAL LIABILITIES %24 3,000.00 60,000.00 63,000.00 163,755.00 142 143 144 EQUITY 145 146 Common Shares 147 Retained Earnings 148 149 TOTAL EQUITY %24 200,000.00 %24 7,692.31 207,692.31 150 371,447.31 151 TOTAL LIABILITIES AND EQUITY 152
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:98
99 FINANCIAL STATEMENTS
100 DO NOT CHANGE ANYTHING IN THE FINANCIAL STATEMENTS. RESULTS WILL AUTOMATICALLY POPULATE.
101
Company Ltd.
David Kamenar
Company Ltd.
102
Balance Sheet
Income Statement
103
At December 31, 2021
For the Quarter Ending December 31, 2021
104
105 ASSETS
REVENUE
106 Current Assets:
107 Cash
108 Accounts Receivable
109 Allowance for Doubtful Accounts
110 Net Accounts Receivable
111 Inventory
112 Cash Equivalents
Sales Revenue
800,000.00
24
80,010.56
Sales Returns
2$
3,458.00
20,500.00
Sales Discounts
$4
925.00
615.00
Net Sales
24
795,617.00
19,885.00
2$
63,000.00
Inventory Used
24
125,000.00
$4
5,986.75
Gross Profit
670,617.00
113 Total Current Assets
$4
168,882.31
114
EXPENSES
115 Long-Lived (Fixed) Assets:
116 Buildings
117 Less Accumulated Depreciation Buildings
118 Net Book Value Buildings
Sales and Admin Expenses:
25,000.00
90,000.00
8,000.00
$4
Advertising
Rent
Office Supplies
225,000.00
195,840.00
$
%24
29,160.00
119
156,000.00
Wages
Total S & A Expenses
120 Property and Equipment
121 Less Accumulated Depreciaton P&E
122 Net Book Value P&E
316,000.00
279,000.00
142,595.00
173,405.00
Operating Income
391,617.00
123
124 Total Long-Lived (Fixed) Assets
125
202,565.00
Other Revenue & Expenses
Rental Revenue
24
3,000.00
371,447.31
Interest Expense
%24
656.25
126 TOTAL ASSETS
Depreciation Expense
15,000.00
127
128 LIABILITIES
129 Current Liabilities:
130 Accounts Payable
Income Tax Expense
39,161.70
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
1,750.00
75,000.00
24
100,755.00
135
136 Long-Term Liabilities
137 Loan Payable
138 Bonds Payable
3,000.00
60,000.00
63,000.00
139 Total Long-Term Liabilities
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
150
24
7,692.31
207,692.31
371,447.31
151 TOTAL LIABILITIES AND EQUITY
152
Assignment
Transcribed Image Text:56
57
58 Step 4: ANALYSIS
59
60 Take a look at the resulting financial statements below and provide calculations for the following:
61 4A) What is your Receivables Turnover Ratio?
62 4B) What is your Days to Collect?
Show your formula in this column for each of the ratios.
63 4C) What is your Fixed Asset Turnover Ratio?
64 4D) What is your Current Ratio?
65 4E) What is your Times Interest Earned?
66
67
68 4F) Explain how your Receivables Turnover Ratio and Days to Collect are impacting your financials? Can this be improved? How?
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75 4G) Based on your Fixed Assets Turnover Ratio and your Quick Ratio how would you assess the position of your company?
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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:
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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 needas
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97
98
Assignment
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