calculate NWC for years 2019 and 2020. 2- Calculate the WCR for year 2019 and 2020. 3- Calculate the NLB for years 2019 and 2020. 4- Calculate the CLI and CCE for year 2020. 5- looking at your calculations analyze the solvency and the liquidity of the company please show all working and calculations.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
1- calculate NWC for years 2019 and 2020.
2- Calculate the WCR for year 2019 and 2020.
3- Calculate the NLB for years 2019 and 2020.
4- Calculate the CLI and CCE for year 2020.
5- looking at your calculations analyze the solvency and the liquidity of the company
please show all working and calculations.
![Income statements-2020
2020
Sales
120
Cost of goods sold
60
Other operating expenses
10
Depreciation
Earnings before interest & taxes
45
Interest paid
10
Taxable income
35
Taxes
14
Net Income
21
Dividends
16.8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4067b711-ba4e-4a33-9a86-bc1abe32643f%2F5b2486f6-5327-4415-996e-2a4fc37ab3e8%2F3m0o73q_processed.jpeg&w=3840&q=75)
![e financial statements for the Company "ALPHA"for the years 2019 and 2020 are presented as follows
Balance sheet 2019 & 2020
Assets
2020
2019
Liabilities & Stockholders'
2020
2019
equity
Current assets
Current liabilities
Cash
12
10
Accounts payable
20
Accounts
50
45
Notes payable
6.
receivable
Inventory
30
40
Аcruals
5
4
Total current liabilities
35
30
Total current
92
95
Long-term debt
55
60
assets
Fixed assets
Owners' equity
Net Plant &
108
100
Common stocks
100
100
equipment
Retained earnings
10
Total Fixed Assets
108
100
Total equity
110
105
Total assets
200
195
Total liabilities & owner's
200
195
equity
25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4067b711-ba4e-4a33-9a86-bc1abe32643f%2F5b2486f6-5327-4415-996e-2a4fc37ab3e8%2Fm6t7fy_processed.jpeg&w=3840&q=75)
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