In addition to income from the Fixed annual pension payment of $65,000 (after taxes); Fixed annual payments of $40,000 (tax-free) from the Gift Fund Family Portfolio $1.2 million We also have small business, a coffee shop established last year and recently we have a net income of $130, 000. Unfortunately, we lost our books of accounts in our coffee shop. The only data that we have are the followings: Acid Test Ratio= 0.6 Current asset w/o inventory= 108, 000 Cost of Goods Sold= 0.45 Land, Property, and equipment= $624, 381 Net Profit Margin is 0.35 A/R Turnover =9.2857 Debt Ratio= 38.78% Inventory Turnover = 1.5 times Salaries and Wages= $30, 000 Interest Expense= $12, 028.57 Administrative Expense is 6% of Gross profit Beginning Capital= $470, 000 Net Profit= 130, 000 Prepare an adjustment financial statements including all incomes for the next (coming year, December end) assuming that the sales in coffee shop will increase by 5% and all other ratios and financial rates will remain constant.
In addition to income from the
- Fixed annual pension payment of $65,000 (after taxes);
- Fixed annual payments of $40,000 (tax-free) from the Gift Fund
- Family Portfolio $1.2 million
We also have small business, a coffee shop established last year and recently we have a net income of $130, 000. Unfortunately, we lost our books of accounts in our coffee shop. The only data that we have are the followings:
Acid Test Ratio= 0.6 Current asset w/o inventory= 108, 000
Cost of Goods Sold= 0.45 Land, Property, and equipment= $624, 381
Net Profit Margin is 0.35 A/R Turnover =9.2857
Debt Ratio= 38.78%
Inventory Turnover = 1.5 times
Salaries and Wages= $30, 000
Interest Expense= $12, 028.57
Administrative Expense is 6% of Gross profit
Beginning Capital= $470, 000
Net Profit= 130, 000
Prepare an adjustment financial statements including all incomes for the next (coming year, December end) assuming that the sales in coffee shop will increase by 5% and all other ratios and financial rates will remain constant.
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