Question

3 E 21 B AaBbCcDc AabbCd AaBbCe) AaBbcc Emphasis T Heading 1 T Heading 2 T Heading 3 1 E Paragraph Styles 1 1 - - - 2 3 - 4 LOUIS ZIMMER COMPANY Comparative Balance Sheet December 31 2022 2021 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Total Current Assets Property, Plant and Equipment Less Accumulated Depreciation Total Liabilities and Stockholder's Equity Current Liabilities Accounts Payable Income Tax Payable Total Current Liabilities Long Term Liabilities Bonds Payable $. 31.000 28,000 25,000 $ 84.000 60,000 (22.000) $ 122.000 $ 13,000 14,000 35,000 $ 62,000 78,000 (24.000 $116.000 $ 27.000 5.000 $ 32,000 27,000 $ 23,000 8.000 $ 31,000 35,000 $ 14,000 36,000 Stockholder's Equity and Retained Eamings Common Stock $ 18,000 Retained Earnings 45 000 Total Stockholder's Equity and Retained Earnings $ 63.000 Total Liabilities and Stockholder's Equity S122.000 LOUIS ZIMMER COMPANY Income Statement For the year ended December 31, 2022 $ 50,000 S116.000 S225

Answer 1

Answer to question part A : As per images below

In the books of Louis Zimmer Company Cash Flow Statement for the year ended Dec 31, 2022 Particulars Amout (t) Net profit after taxes $ 13000 Add back! Direct taxes $ 4,000 Depreciation 30 (Note -1) Add! Increase in Accounts Payable $ 4000 Decrease in lumentenes $ 10, ouo len: Increase in Accounts Receivable & €14,000) Net Canh from Operations $ 24,500 Lens: Direct Taxes pand dining the year (Note -2) $ (7000) Net Cash Flow from a $ 17,500 Operating Activitien (A)

Sale Net Proceeds Cash Flow from Equipment sold - $ 8,500 from Inverting Actiories - $ 8,500 Cash Received Issuance of Common Stock = $ 4,000 lens Dividends Paid during the Year & (4,000) les: Bonds Paid during the year $ (8,000) Net cash flow from Bremcig Habioting - $(8,000) Total Cash flow from all Activities = $18,000 CATB + c) Add: Opening Cash & Cash Equiv. $13,000 Cash & Cash Equiv. a $31000

Note I : Depreciation I Toral beginning accumulated deprecia 24000- lessi Accounulated Repreciation em fer for Equiponent sold = (go) less! Total closing accumulated deprec. = (22,000 Depreciation Expenses during = 7,500 I the year . - - Node 2 : Direct Taxes paid Opening Direct Taxes Payable = 8,000 Add back: Tax Expense for the year = 4,000 less: Closing Direct Taxer Payatle=(5,000) Taxes paid during the year. = $7,000 -

Answer to question Part B : See images below

(1) Current Ratio = Current Cument Assets liabilities = $ 84,000 $ 32,000 2 2.625 2 Acid Test Ratio a liquid Assets Curent liabilities Cument Assets -Inventory Canent liabilities. E $ 59,000 $ 32,000 = 1.844 3 Asset Turnover & Net saler Average Assets Deving the Year - - $ 220,00 - ($ 116 as + $12000) = 1.849 times.

(4) Prosit Mangin ( Gross Proft Mangin - Grop Net posit Sales = $ 40,000 220 Ovo 18.2%. = 6 Net Post Mangin = Net Net Profit sales = $ 13.00 220,000 5.91% = (5 Receivable Turnover = Net Credit Sales e Acconto Receive a $220,000 = 10:48 ( $ 12,000 + $ 28,000 times

(6) Average Collection Period - 365 Receêrable Turnovel = 365 10.48 = 34.84 days x 35 days 1 Inventory Turnover = Net Credit Purchase Average Inventory $ 180,000 (35000 + 25000) 2 (8) Days in Inventory = 365 Inventory Turnover = 365 . 6 = 60.833 Ž 61 days

(a) Payout Rakro a Total Dividend Net Income $4,000 = 30.77% $ 13.000 (10) Return on Assets - A Net Income Average Total Assets $ 13.000 a 10.92% $ 119,000