prepare a balance sheet 1

Assignment Questions

Q1. From the information given below: (10 Marks)

Q2. (10 Marks)

Sales		$525,000
Cost of goods sold		$200,000
General and administrative expenses		$62,000
Depreciation expenses		8,000
Interest expense		12,000
Income taxes		97,200
From the information given above, prepare (a) the income statement, and
(b) the common-sized income statement.

Q3. Prepare a statement of cash flows from the following list of items. (5 Marks)

Increase in inventories		22,000
Operating income		625,000
Dividends		55,000
Increase in accounts payables		92,500
Interest expense		118,000
Increase in common stock		22,000
Depreciation expense		48,000
Increase in accounts receivable		210,000
Increase in long-term debt		145,000
Increase in short-term notes payable		36,500
Increase in gross fixed assets		144,000
Increase in paid in capital		60,000
Income taxes		202,000
Beginning cash		700,000

Q4. Calculate the following ratios from the Balance Sheet and the Income Statement of Saudi Manufacturing Corporation given below: (5 Marks)

a.Current Ratio

b.Debt Ratio

c.Fixed asset turnover

d.Total asset turnover


Balance Sheet:
Cash		30,000
Acct/Rec		72,500
Inventories		50,000
Current assets		152,500
Net fixed assets		240,000
Total assets		392,500

Accts/Pay		44,500
Accrued expenses		31,000
Short-term N/P		9,500
Current liabilities		85,000
Long-term debt		110,000
Owner’s equity		197,500
Total liabilities and owners equity		392,500

Income Statement:
Net sales		450,000
COGS		220,000
Gross profit		230,000
Operating expenses		128,000
Net operating income		102,000
Interest expense		18,500
EBT		83,500
Income taxes		33,000
Net income		50,500