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2 years ago

Financial Statements, Closing Entries & Ratio Analysis

Business

2 answers:

kvasek [131]2 years ago

6 0

The question requires preparation of Financial Statements.

i. Income Statement :

Service Revenue 68,400

Advertising Expense 1,750

Salaries and Wages Expense 47,800

Utilities Expense 5,400

Supplies Expense 2,600

Depreciation Expense 8,400

Interest Expense 1,100

Rent Expense 1,800

Total Expense 68,850

Net Loss - 450

ii. Financial Statement :

Assets :

Cash 10,450

Accounts Receivable 16,800

Prepaid Rent 7,600

Supplies 1,500

Inventory 6,400

Buildings 125,000

Equipment 32,000

Total Assets 199,750

Liabilities :

Accumulated Depreciation – Equipment 7,200

Accumulated Depreciation – Buildings 21,000

Accounts Payable 13,900

Notes Payable (due 2024) 49,000

Unearned Service Revenue 9,450

Equity :

Share Capital 76,000

Retained Earnings 31,650

Dividends 8,000

Debit Net Loss 450

Debit Total Equity and Liabilities 199,750

b. Ratio Analysis :

i Current Ratio :

Current Assets / Current Liabilities 1.7 times

ii Acid Test Ratio

Current Assets - Inventory / Current Liabilities 1.49 times

iii Account receivable turnover [Account Receivable / Sales ] * 365 84 days

iv Average collection period 365 / Average receivable turnover 4.29

v Profit Margin

Profit / Sales - 0.6%

vi Debt to total assets

Total Debt / Total Asset 1.98 times

vii Return on Asset Operating Income / Total Asset 0.0023

viii Times interest Earned EBIT / Interest Expense 0.4 times

Learn more about business at brainly.com/question/26154564

KATRIN_1 [288]2 years ago

5 0

Answer: im not sure don't use my answer.

Explanation: CAHS CASH CASH

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Answer:

DR Interest receivable 26,400

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Explanation:

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Interest is 11% so the interest to be received in December is;

= 11% * 240,000

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3 years ago

Price and Output data over a five year period for an economy that produces only one good. Assume that year 2 is the base year. Y

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Answer:

$90

Explanation:

Nominal GDP is GDP calculated using current year prices.

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18 x $5 = $90

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3 years ago

When there is no government involvement in answering the three basic economic questions this is which economy?

Dmitry_Shevchenko [17]

When there is no government involvement in answering the three basic economic questions this is Market Economy.

Market

Explanation:

When there is no government interventions in the market system or economy then it is known as Market Economy or Lassez faire.

Here the firms and household determine who sells the goods and who buys it and everything is carried out according to them and there is no government intervention like that of the command economy.

There is a lot of profit for the businessman as the consumers pay as high the price as they want to and no amount is given to the government.

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3 years ago

During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the compan

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Answer:

Part 1

Cost of Equipment Sold = $9300

Accumulated Depreciation of Equipment Sold = $ 1100

Cash received from Sale = $5300

Part 2

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Part 3

Net Cash flows from Investing Activities

Add (Positive) Proceeds from Sale of Equipment $ 5300

Explanation:

Part 1

Cost of Equipment Sold:

The figure is obtained from Equipment At Cost Account.

Open the Account as follows:

Beginning Balance $ 20300 (debit), Ending Equipment $ 11000, Balancing figure $ 9300 (20300-11000) is the cost of equipment sold.

Accumulated Depreciation of Equipment Sold

The figure is obtained from Accumulated Depreciation.

Open the Account as follows:

Beginning Balance $ 1980 (credit), Profit and loss - Depreciation $ 870 (credit), Ending Balance $ 1750 (debit), Balancing figure $ 1100 (1980+870-1750) is the Accumulated Depreciation on Equipment Sold

Cash Received on Sale

This figure is figure is obtained from Equipment Disposal Account.

Open the Account as follows:

Cost of Equipment Sold $ 9300 (debit), Accumulated depreciation on equipment sold $1100(credit),Loss on Sale of Equipment $2900(credit),the Balancing figure $5300 (9300-1100-2900)

Part 2

Loss on sale of Equipment is the only Income Statement Item affecting the Operating Activity of the Cash Flow Statement.

Add back to Operating profit since this is a non-cash item and was initially deducted in the calculation of Operating Profit.

Part 3

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4 0

3 years ago

Mr. Coffey bought a house for $195,000. He made a 20% down payment. The interest rate is 5.25% for 30 years.How much was Mr Coff

s344n2d4d5 [400]

Answer:

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In this case, Mr. Coffey 20 % of the cost of the house

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=$39,000

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3 years ago