The following accounts balances and other financial information are drawn from the records of the Fenway Company for 2022. Fenway Company 2022 Net sales Revenue 38,800 Depreciation Expense 500 Unearned Revenue 2600 Accumulated Depreciation 1000 Accounts Receivable 8,000 Operating Expenses 4500 Cost of Goods Sold 26,000 Cash – Ending 4400 Inventory 5,000 Land 20000 Accounts Payable 5,800 Beginning Balance Retained Earnings 8500 Notes Payable 6,000 Common Stock 12000 Supplies 50 Cash received from customers 6400 Supplies Expense 750 Purchased Office Equipment 2500 Office Equipment 3,500 Received Cash from Issuing Stock 3000 Paid Cash for Dividends 2000 Paid Cash for Operating Expenses 1000 Instructions As the Chief Financial Officer (CFO) of a publicly traded company you are charged with evaluating companies in a similar industry as your own for acquisition. The President of the corporation has requested that you evaluate the overall financial health of the Fenway Company and report to the Board of Directors whether or not you should purchase the Fenway Company. In connection with this endeavor, provide responses to the following short answer and essay questions. Requirements 1-Calculate the Net Income for the Fenway Company ___________ 2-Calculate the Gross Profit for the Fenway Company ___________ 3-Calculate the Cash Flow from Operations for the Fenway Company ___________ 4-Calculate the Total Assets for the Fenway Company ___________ 5-Calculate the Total Liabilities for the Fenway Company ___________ 6-Using knowledge from other business courses (e.g., Economics, Management, Marketing and Finance) provide three questions that you would ask the Fenway Company to consider in your acquisition decision in addition to the information computed above. 7-From your analysis of the financial information included in the problem, state whether you would or would not recommend purchasing the Fenway Company and write a short paragraph stating your reasons.
Question1
The following accounts balances and other financial information are drawn from the records of the Fenway Company for 2022.
Fenway Company 2022
|
Net sales Revenue |
38,800 |
|
500 |
|||
|
Unearned Revenue |
2600 |
|
1000 |
|||
|
|
8,000 |
Operating Expenses |
4500 |
|||
|
Cost of Goods Sold |
26,000 |
Cash – Ending |
4400 |
|||
|
Inventory |
5,000 |
Land |
20000 |
|||
|
Accounts Payable |
5,800 |
Beginning Balance |
8500 |
|||
|
Notes Payable |
6,000 |
Common Stock |
12000 |
|||
|
Supplies |
50 |
Cash received from customers |
6400 |
|||
|
Supplies Expense |
750 |
Purchased Office Equipment |
2500 |
|||
|
Office Equipment |
3,500 |
Received Cash from Issuing Stock |
3000 |
|||
|
Paid Cash for Dividends |
2000 |
|||||
|
Paid Cash for Operating Expenses |
1000 |
Instructions
As the Chief Financial Officer (CFO) of a publicly traded company you are charged with evaluating companies in a similar industry as your own for acquisition. The President of the corporation has requested that you evaluate the overall financial health of the Fenway Company and report to the Board of Directors whether or not you should purchase the Fenway Company. In connection with this endeavor, provide responses to the following short answer and essay questions.
Requirements
1-Calculate the Net Income for the Fenway Company ___________
2-Calculate the Gross Profit for the Fenway Company ___________
3-Calculate the
4-Calculate the Total Assets for the Fenway Company ___________
5-Calculate the Total Liabilities for the Fenway Company ___________
6-Using knowledge from other business courses (e.g., Economics, Management, Marketing and Finance) provide three questions that you would ask the Fenway Company to consider in your acquisition decision in addition to the information computed above.
7-From your analysis of the financial information included in the problem, state whether you would or would not recommend purchasing the Fenway Company and write a short paragraph stating your reasons.
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Is there an answer for questions 4,5,6, and 7 of the problem above?
Total Assets? Total Liabilities?
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