Question

Category	Prior year	Current year
Accounts payable	41,400	45,000
Accounts receivable	115,200	122,400
Accruals	16,200	13,500
Additional paid in capital	200,000	216,660
Cash	???	???
Common Stock @ par value	37,600	42,000
COGS	131,400	177,729.00
Depreciation expense	21,600	22,670.00
Interest expense	16,200	16,543.00
Inventories	111,600	115,200
Long-term debt	135,000	138,834.00
Net fixed assets	376,695.00	399,600
Notes payable	59,400	64,800
Operating expenses (excl. depr.)	50,400	69,411.00
Retained earnings	122,400	136,800
Sales	255,600	335,338.00
Taxes	9,900	18,713.00

1. What is the entry for the current year's operating expense on a common-sized income statement?

2. What is the current year's cash balance?

3. What is the current year's return on assets (ROA)?

4. What is the current year's return on equity (ROE)?

5. What is the current year's entry for long-term debt on a common-sized balance sheet?

Answer 1

First, we need to categorize each item into the Balance Sheet item or profit and loss item. Then further sub-categorizing into Assets, Liability, Income or expenses.

118 y Prepaning income Statement for werent prior to out Net year find income Add : No th uud Total Stalemeul Prior year Met income Pauticulars Sales hoss LOGS Lurrat 335,339 255,60 Ale Rec Cash C anven. interest expense Met Alege catim expeuse Operating expeuse coxco Kepbeociation) Tax Net income (181,40) (178,243) (21,600) (22,453) (16, 20) i (16,617) (50,400) C69,411) (9,90) (18713 26100 & 29901 Tota Ale payable Prepucing Balance Sheet for wenent and pector year to out Balance. ability Prior yea Curentyr 41,40 ) 45, no ACCrivals 16,20 13,sw Additional paid in capital do, wo Common Stock 216660 per Value 37,60 42,000 hong Tenn debt 135, wo 399,60 59,40 Retained 69800 122,400 186,80 Roy kumku DUAL CAMERA Motes payable 2020 09/24 07:50

ment et Add : Net lucome for the year 2610 09901 Total 638,100 948261 weatyr 55,838 wwrent year Prior year 11520 122,40 8,243) Cousb C Bwanting figure) 35,622 311,06) Attentos 111600 115,20 375, 678 399,6w Balance Shait Assets Ale Receivable Balancin Inventores Met Fixed Assets Total 638,100 948,261 713 Formula Used 8- Totul Liability. Sum totul Assets g For Prior 6381W - (115,200 + 111,600 & 875, 678) 3.5622 L. Yeau : - ubyt hod ter ( Cuiment year & 948,261 - ( 122,400 t 115,200 + 399,600) -660 = 311,061 -W0 300 -ow AT DUAL CAMERA 2020/09/24 07:50

ROE ROE = Net income / Shame holder equity Met income = 29901 wo ow = Common Stock epevalue in capital & Reatined 800 3884 000 6660 16,800 shame holder equity + Additenad puis canning & Net profit 4000 + 216660 + 186800 +229901 U23361 57594 ROE 09901 / u 25361 2003% 42 2 wwent year BY habiling twendar Ale puyable Accruals Additional paid in capital Common stock Long tem hebt Note payable pa Retuired canning Addi Net income uswo 135w 216660 U 2800 188834 64800 136800 299ol 1901 lity a ne for theya Totul 687495

I Net profil 5660 800 -Y 4000+ 216660 + 18 6800 +229901 U23361 594 ROE 89901 / 425361 7003% 34 habiling ( lovendar lurent year Ale puyable uswo 6-55% Alcruals 135w .1.966 Additional paid in capitel 216660 31.51% Common stock u 2800 6.11% 188834 20.196 Note payable 64800 9.437 Retained 136800. 19.96 canning Add: Net income for the ya 29901 4.351 Totul 687495 200% Long tem Debt AIDUAL CAMERA R 2020/09/24 08:02