Question

From this information how would I setup a balance sheet and income sheet to calculate the following:

Accounts Payable Accounts Receivable, net Cash Common Stock, $1 par Cost of Goods Sold Income Tax rate Interest Expense Inventory Marketable Securities Note Payable Plant, Property, & Equipment, net Prepaid expenses Retained Earnings Sales Selling & Administrative Expenses Wages Payable This Year $3,160 $2,021 $960 $5,000 $11,138 30% $792 $3,900 $360 $6,700 $9,300 $200 unknown $13,750 $1,590 $400 Last Year $2,160 $1,600 $1,260 $5,000 $9,900 37% $780 $2,700 $300 $6,500 $8,940 $480 $1,320 $12,480 $1,560 $300

-Working Capital

-Current ratio

-Acid test Ratio

-Accounts receivable Turnover

-Average Collection period

-Inventory Turnover

-Debt to equity Ratio

-Gross margin Percentage

-Net profit margin percenage

-Return on Assets

Answer 1

Income Statement	This Year	Last Year
Sales	$ 13750	$ 12480
Cost of Goods Sold	$ 11138	$   9900
Gross Profit	$ 2612	$   2580
Selling &Administrative expenses	$   1590	$   1560
Operating Income	$ 1022	$   1020
Interest Expense	$     792	$     780
Income before tax	$    230	$     240
Income Taxes	$       69	$   88.80
Net Income	$    161	$ 151.20

Balance Sheet	This Year	Last Year
Assets
Current Assets
Cash and cash equivalents	$ 960	$ 1260
Short term marketable securities	$ 360	$ 300
Accounts Receivable(net)	$ 2021	$ 1600
Inventory	$ 3900	$ 2700
Prepaid Expenses	$ 200	$ 480
Total Current assets	$ 7441	$ 6340
Non Current Assets
Plant, Property & Equipment	$ 9300	$ 8940
Total Assets	$ 16741	$ 15280
Liabilities and Shareholder’s Equity
Current Liabilities
Accounts Payable	$ 3160	$ 2160
Notes Payable	$ 6700	$ 6500
Wages Payable	$ 400	$ 300
Total Current Liabilities	$ 10260	$ 8960
Shareholder’s Equity
Common Stock	$ 5000	$ 5000
Retained Earnings	$ 1481(Note)	$ 1320
Total Liabilities and Shareholder’s Equity	$ 16741	$ 15280

1. Working Capital=Current Assets-Current Liabilities

This Year: $ 7441-$ 10260=-$ 2819

Last Year: $ 6340-$ 8960=   -$ 2620

2. Current Ratio=Current assets/Current Liabilities

This Year: $ 7441/$ 10260=0.73

Last Year: $ 6340/$ 8960=0.71

3. Acid Test Ratio=Quick Assets/Current Liabilities

This Year: $ 3341/$ 10260=0.33

Last Year: $ 3160/$ 8960=0.35

4. Accounts Receivable Turnover=Net Sales/Average Accounts Receivable

Average Accounts Receivable=(Beginning Accounts Receivable+Ending Accounts Receivable)/2

                                  =($ 1600+$ 2021)/2=$1810.5

Accounts Receivable Turnover=$ 13750/$1810.5=7.59 times