Balance Sheet Information: Amount In Dollars
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Balance Sheet Information 12/31//31/09 Amount in Dollars Amount in Dollars Cash 200..00 Receivables 500..00 Inventories 750..00 Other Current Assets 100..00 Total Current Assets 1,550.00 1,330.00 Plant and Equipment 1,100.00 1,170.00 Other Long - Term Assets 150..00 Total Assets 2,800.00 2,600.00 Accounts Payable 510..00 Other Current Liabilities 25..00 Total Current Liabilities 535..00 Long Term Debt 375..00 Other Long Term Liabilities 225..00 Preferred Stock 250..00 Shareholders' Equity 1,415.00 1,350.00 Total Liabilities and Shareholders' Equity 2,800.00 2,600.00 P&L information Year-2010 Year-2009 Amount in Dollars Net Sales 3500..00 Cost of Goods Sold 2200..00 Other Expenses 300..00 Depreciation 77..00 Interest Expenses 40..00 Tax 200..00 Net Income 683..00 Preferred Stock Dividend 25.00 Common Stock Dividends 260.00 Market Value of Equity 4000.00 Average Number of Shares 100.00 Share Price 40.00 Dividends per Share 2.60 Earnings per Share 6.58 Sheet1 Project Part 1 - Task 2: Purchases Cost per Unit Total Cost January February March Ending Inventory = Value of Ending Inventory of 100 Units Weighted AVG LIFO FIFO Cost of Goods Sold (300 Units Sold) Weighted AVG LIFO FIFO Trial Balance Provided Debits Credits Amount in Dollars Cash 300,000.00 Sales (10,000,000.00) Cost of Goods Sold 7,000,000.00 Other income (50,000.00) Interest Expenses 12,500.00 Land 300,000.00 Building 2,000,000.00 Long Term bond payable (550,000.00) Accrued Liabilities (50,000.00) Accumulated Depreciation Buildings (250,000.00) Equipment 750,000.00 Receivables 100,000.00 Allowance for doubtful accounts (7,500.00) Accumulated depreciation equipment (125,000.00) Common Stock (200,000.00) Payables (115,000.00) Inventories 200,000.00 Prepaid Expenses 50,000.00 Retained Earnings (215,000.,712,500.,562,500.00) Balance Sheet Template Assets Equity and Liabilities Current Assets Current Liabilities Total Current Assets - 0 Total Current Liabilities - 0 Total long term Liabilities - 0 Total property plant and equipment - 0 Total Equity - 0 Total Assets - 0 Total Equity and liabilities - 0 Balance Sheet Information 12/31//31/09 Amount in Dollars Amount in Dollars Cash 200..00 Receivables 500..00 Inventories 750..00 Other Current Assets 100..00 Total Current Assets 1,550.00 1,330.00 Plant and Equipment 1,100.00 1,170.00 Other Long - Term Assets 150..00 Total Assets 2,800.00 2,600.00 Accounts Payable 510..00 Other Current Liabilities 25..00 Total Current Liabilities 535..00 Long Term Debt 375..00 Other Long Term Liabilities 225..00 Preferred Stock 250..00 Shareholders' Equity 1,415.00 1,350.00 Total Liabilities and Shareholders' Equity 2,800.00 2,600.00 P&L information Year-2010 Year-2009 Amount in Dollars Net Sales 3500..00 Cost of Goods Sold 2200..00 Other Expenses 300..00 Depreciation 77..00 Interest Expenses 40..00 Tax 200..00 Net Income 683..00 Preferred Stock Dividend 25.00 Common Stock Dividends 260.00 Market Value of Equity 4000.00 Average Number of Shares 100.00 Share Price 40.00 Dividends per Share 2.60 Earnings per Share 6.58 PROJECT DESCRIPTION Course Objectives Tested: 1.
Produce a balance sheet for a company that distinguishes between current and non-current assets and liabilities. 2. Create a balance sheet from a trial balance. 3. Create a comparison of net income based on different methods of inventory accounting.
4. Analyze a statement of cash flows and show where each line item can be found or calculated from the other financial statements. 5. Prepare a full analysis of key financial ratios for a company and state conclusions about the financial strength of the company compared to industry ratios. PROJECT SUBMISSION PLAN Project Part Description/Requirements of Project Part 1 Title: Creating a Balance Sheet and Evaluating Inventory You will be provided with financial information about a fictional company.
You will have to determine what information is relevant for Project Parts 1 and 2. Task 1: Create a balance sheet from a trial balance for a given scenario. Make sure you classify the accounts appropriately as current or non-current. Click here to download the trial balance. (file B attached) Task 2: Perform inventory valuations using LIFO, FIFO, and weighted average methods based on the following information. Explain the impact of each method on the cost of goods sold and ending inventory.
The company imports microwaves from a supplier in China for the US market. At the end of the first quarter, 100 microwaves are in stock. The company purchased a total of 400 microwaves during the quarter at various prices: January: 100 units @ $75 February: 250 units @ $83 March: 50 units @ $87 The company had no inventory at the beginning of the quarter. Task 3: If the company’s goal is to maximize net income, which evaluation method will you use and why? Use the ITT Tech Virtual Library to support your answer with facts.
Submission Requirements: Click here to download the Task 1 template for calculation. (I attached the file c) Click here to download the Task 2 template for calculation. (file D) Title: Calculating and Analyzing Ratios Based on the financial information provided, calculate the following ratios and explain their purpose: Current Ratio Inventory Turnover Ratio Accounts Receivable Turnover Ratio Debt to Equity Ratio Return on Assets Ratio Asset Turnover Ratio Return on Equity Ratio Profit Margin Ratio Price-Earnings Ratio Dividend Yield Ratio Click here to download the financial statements. (File E) Note: When a balance sheet amount is related to an income statement amount in computing a ratio, the balance sheet amount should be an average of that period.
The average is calculated by adding the ending balances of this year and last year and dividing the result by 2. Describe how a bank lending officer might use ratio analysis. Select five ratios that would be most useful for the purpose and explain the rationale for your selection. Submission Requirements: Submit your answers in a Microsoft (MS) Word file. Font: Arial, 12 point, double-spaced