The Following List In Alphabetical Order Shows The Various I
The Following List In Alphabetical Order Shows the Various Items Tha
The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances as of September 30, 2010 (with the exception of retained earnings, which is the balance on September 1, 2010), and the amounts shown for income statement items are balances for the month ended September 30, 2010.
Accounts payable $17,600
accounts receivable 6,410
advertising expense 14,500
buildings 60,000
capital stock 50,000
cash 15,230
concessions revenue 60,300
cost of concessions sold 23,450
dividends paid during the month 8,400
furniture and fixtures $34,000
land 26,000
notes payable 20,000
projection equipment 25,000
rent expense-movies 50,600
retained earnings 73,780
salaries and wages expense 46,490
ticket sales 95,100
water, gas, and electricity 6,700
Paper For Above instruction
Introduction
Financial statements serve as essential tools for assessing the financial health of a business. Making sense of these statements involves preparing key financial reports such as the income statement, statement of retained earnings, and balance sheet. This paper endeavors to prepare these reports based on the data provided for Maple Park Theatres Corp. as of September 2010, and to analyze whether investing in the company would be a prudent decision.
Income Statement for the Month Ended September 30, 2010
Revenue:
- Ticket sales: $95,100
- Concessions revenue: $60,300
Total Revenue: $155,400
Expenses:
- Salaries and wages expense: $46,490
- Advertising expense: $14,500
- Rent expense - movies: $50,600
- Cost of concessions sold: $23,450
- Water, gas, and electricity: $6,700
Total Expenses: $142,740
Net Income: $12,660
Statement of Retained Earnings for the Month Ended September 30, 2010
Retained earnings, beginning of period (September 1, 2010): $73,780
Add: Net income for September: $12,660
Less: Dividends paid: $8,400
Retained earnings, end of period: $77,940
Balance Sheet as of September 30, 2010
Assets
- Current Assets:
- Cash: $15,230
- Accounts receivable: $6,410
- Property, Plant, and Equipment:
- Buildings: $60,000
- Furniture and fixtures: $34,000
- Land: $26,000
- Projection equipment: $25,000
Total Assets: $191,640
Liabilities
- Current Liabilities:
- Accounts payable: $17,600
- Long-term Liabilities:
- Notes payable: $20,000
Total Liabilities: $37,600
Shareholders’ Equity
- Capital stock: $50,000
- Retained earnings: $77,940
Total Shareholders’ Equity: $127,940
Note: The total assets ($191,640) equal the sum of total liabilities and shareholders' equity ($37,600 + $127,940), confirming the balance sheet balances.
Conclusion and Investment Analysis
Based on the financial statements prepared, Maple Park Theatres Corp. demonstrates a positive net income of $12,660 for September 2010, indicating operational profitability. The company's retained earnings increased from $73,780 to $77,940, further signifying profitability and retained growth wealth for shareholders. The balance sheet reveals assets totaling $191,640 against liabilities of $37,600, leaving shareholders' equity at $127,940, which indicates a healthy financial position.
Investing $1,000 in Maple Park Theatres appears promising based on the recent profitability, solid asset base, and positive retained earnings. However, to make a more informed decision, additional information is necessary, including cash flow statements, detailed debt obligations, competitive positioning within the entertainment industry, and future growth prospects. Moreover, understanding the company's long-term strategic plans, market conditions, and potential risks is crucial for a comprehensive evaluation.
In conclusion, while the financial statements suggest a stable and potentially profitable operation, prudent investors should seek further data—such as future earnings projections, industry analyses, and management quality—before committing their funds.
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