Question

Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. Your paper should be double spaced in Times New Roman (or its equivalent) font, which is no greater than 12 points in size. Cite at least three sources in APA format.

In this paper, in addition to presenting the computed answers, please also discuss how you arrived at each answer the accounting problem asks. The accounting problem presents a company’s balance sheet, income statement, and statement of cash flows for a theoretical company, Polly’s Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. Include in this narrative an explanation of:

1. the financial statement being completed;
2. the account being valued;
3. its relationship to the other financial data.

For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and explain that you can derive the AP value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion about the company’s performance based on the completed statements.

Please refer to the income statement, balance sheet, and statement of cash flows of Polly’s Pet Products.

Superior papers will mention and explain the following elements when responding to the assignment question:

• Provide correct balances for the blank financial account lines.
• Define the financial statement being completed.
• Discuss how the values were determined.
• Define and explain each account line that was completed.
• Analyze, evaluate, and develop conclusions about the company’s performance based on the financial information.

Be sure to use APA formatting in your paper.

Polly's Pet Products
Balance Sheet as of December 31, 2018
ASSETS
CURRENT ASSETS
Cash
Accounts receivable		50,000
Other assets		25,000
Total current assets
LONG TERM ASSETS
Fixed Assets		75,000
TOTAL ASSETS
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		75,000
Accrued expenses
Income tax payable		5,000
Current portion of notes payable		12,000
Deferred income taxes		1,500
Total current liabilities		123,500
LONG TERM LIABILITIES
Notes payable (long term)
TOTAL LIABILITIES		161,500
STOCKHOLDERS' EQUITY
Common stock	5,000
Additional paid-in capital	15,000
Retained Earnings
Total stockholders' equity
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

Polly's Pet Products
Income Statement as of December 31, 2018
Revenues	650,000
Operating Costs
Gross Profit	205,000
General and Administrative Expenses	75,000
Operating Income
Other Expense	60,000
Income Before Provision for Income Taxes
Provision for Income Taxes	5,000
Net Income
Retained Earnings, Beginning Balance	103,500
Net Income
Retained Earnings, Ending Balance

Polly's Pet Products
Statement of Cash Flows as of December 31, 2018
Cash Flows from Operating Activities
Cash received from customers		600,000
Cash paid out to suppliers and employees
Interest paid		(5,000)
Taxes paid		(10,000)
	Net cash provided by operating activities		185,000
Cash Flows from Investing Activities
Purchase of fixed assets		(25,000)
	Net cash used in investing activities		(25,000)
Cash Flows from Financing Activities
New loans		50,000
Repayments on loans		(45,000)
Issuance of common shares of stock		5,000
	Net cash provided by financing activities
	Net change in Cash
	Cash balance, beginning of year		30,000
	Cash balance, end of year

Answer 1

Income Statement in 205,000 650,000 Revenues Operating Costs (650,000-205,000) (4.45,000) Gross Profit ) wont) General & Administrative Expense (75,000) Operating Income to Other Expense tool thiseno Income befone Provision to 70,000 for Income Taxes Provision for Income Taxes 65,000) Net Income 2 24 65,000 130,000 (60,000) Refained Parring, Beginning Belance Net Income 0 0 0 103,500 65,000 SN 1 Retained Canning, Ending Balance 168,500

Cash How Shivatal Statement Cash Recerved from Customers Cash paid out to suppliers and 600,000 44,00,000) (5000) (10,000) employees (600,000 - 10.000 - 5000-135000) Interest pould Taxes poid Net cash provided by Operating Activities Purchases of fixed Assets Met cach used in Inverting. Activities 185.000 125.000) o (25,000) New loans Repayment of loans Issuance of common shares of stock. Met cash provided by finon eing activities 50,000 (45,000) 5,000 tilat 10,000 170.000 Net Change in Cash sasa (185,000-25,000 H0,000) Cash balance at the beginning 30,000 Cach balance at the end 200,000

(Haga No. Shivalal e flow Statement Balance Sheet Assets Current Assets, a Cash (from Cash Flow Statement Accounts Receivable Other Assets Total Current Assets Long Term Acrets fixed Assets 200,000 Sopoo 25,000 275,000 75000 TOTAL ASSETS 350,000 Liabilities & Stockholders Equity 75,000 Current Wabilities Accounts Payable Accrued Expenses foto Income Tax payable Current portion of Notes Payable Detened Income taxes Total current liabilities 5,000 12,000 Soo 123500 161500 l Long Term Liabilities Notes Payable (long term) = 123,500) Total LEABILITIES 38,000 161.500

(Shivalai STOCKHOLDER'S ECOULTY 5,000 15,000 Zaooo Common Stock Additional poud-in-capital Retouned Earnings (from Cash flow statement) Total stockholder's equity 168,500 189.500 Total Liabilities & Stockholders 350,000 Equite o (189.500t 161,500) Current Ratio Cerrent Assets Current habilities 275,000 123, Soo = 2.23
Current ratio between 2 to 1 is considered to be a sign of a healthy business, indicating a company with the ability to meet short-term liabilities while also investing a healthy percentage of its working capital. A current ratio greater than 2-to-1 may indicate that a company is not investing short-term assets efficiently.