The following accounts (in no particular order) are for PerfectReb Corporation for the fiscal year ended December
31, 2015. (S/T = Short-Term; L/T = Long-Term)
REQUIRED:
A) Calculate Perfect Reb Corporationâs net income or net lossfor the 2015 fiscal year. You may solve this in any
manner that you wish, but it is highly recommended to prepare amultiple step income statement.
B) Using proper form, prepare Perfect Reb Corporationâs balancesheet for 2015.
C) Using the information provided, solve for the requestedratios and respond to the corresponding questions.
Common Stock (13,000 shares
outstanding)
$52,000 Sales Discounts $5,000
Accrued Expenses (Payables)
20,000 Income Tax Expense (25% of IBIT) ???
Miscellaneous Operating Expenses
50,000 Cash 142,000
Accounts Receivable
20,000 Interest Expense 4,000
Buildings
186,000 Marketable Securities 62,000
Retained Earnings
??? Notes Payable (due in 5 years) 12,000
Wages Expense
60,000 Rent Expense 11,000
Inventory
40,000 Unearned Revenue 19,000
Accumulated Depreciation â Buildings
48,000 Allowance for Uncollectible
Accounts
15,000
Accounts Payable
41,000 Sales 433,000
Gain on Sale of Equipment
62,000 Mortgage Payable ($12,000 S/T) 144,000
Land
50,000 Sales Returns & Allowances 12,000
Bad Debt Expense
2,000 Depreciation Expense 11,000
L/T Investments
7,000 Cost of Goods Sold 109,000
Notes Receivable ($2,000 S/T)
13,000 Interest Revenue 3,000
A) NET INCOME (10 points) â SHOW ALL WORK ANDCALCULATIONS!!!!
B) CLASSIFIED BALANCE SHEET (15 points)
Perfect Reb Corporation
Balance Sheet
December 31, 2015
ASSETS LIABILITIES
Current Assets Current Liabilities
Total Current Liabilities
Total Current Assets
Long-Term Assets Long-Term Liabilities
Total Long-Term Assets Total Long Term Liabilities
Fixed Assets
Total Liabilities
EQUITY
Total Fixed Assets
Total Equity
TOTAL ASSETS
TOTAL LIABILITIES & EQUITY
C) RATIOS AND ANALYSIS (15 points):
Use the financial statements and additional information tocalculate the ratios. Round your answers to two decimal
places. Be sure to label your answer correctly (example, %,times, days, etc.). IF AN ANSWER SHOULD BE
EXPRESSED AS A PERCENTAGE, DO NOT LEAVE IT IN DECIMAL FORM!!!!(i.e. 0.5015 = 50.15%!!!!)
Previous (December 31, 2014) year end balances for:
Accounts receivable, net of allowance $2,000
Inventory 15,000
Stockholdersâ Equity 139,000
Market price per share for one share of common stock at Dec 31,2015 $94.50/share
Dividend per share for one share of common stock for FYE Dec 31,2015 $1.25/share
No new shares of common stock were issued during 2015. Thecompanyâs credit policy is net 15.
RATIO CALCULATION ANSWER
1) Quick (Acid-Test) Ratio (2 points)
2) Dividend Yield (2 points)
3) Gross Profit Percentage (2 points)
4) Average Daysâ Sales Uncollected 2 points)
5) Inventory Turnover (2 points)
6) Price-Earnings Ratio (2 points)
7) Using the liquidity ratios (and general accepted norms forthe current ratio and quick/acid-test ratio), comment
on the companyâs financial position. (3 points)
The following accounts (in no particular order) are for PerfectReb Corporation for the fiscal year ended December
31, 2015. (S/T = Short-Term; L/T = Long-Term)
REQUIRED:
A) Calculate Perfect Reb Corporationâs net income or net lossfor the 2015 fiscal year. You may solve this in any
manner that you wish, but it is highly recommended to prepare amultiple step income statement.
B) Using proper form, prepare Perfect Reb Corporationâs balancesheet for 2015.
C) Using the information provided, solve for the requestedratios and respond to the corresponding questions.
Common Stock (13,000 shares
outstanding)
$52,000 Sales Discounts $5,000
Accrued Expenses (Payables)
20,000 Income Tax Expense (25% of IBIT) ???
Miscellaneous Operating Expenses
50,000 Cash 142,000
Accounts Receivable
20,000 Interest Expense 4,000
Buildings
186,000 Marketable Securities 62,000
Retained Earnings
??? Notes Payable (due in 5 years) 12,000
Wages Expense
60,000 Rent Expense 11,000
Inventory
40,000 Unearned Revenue 19,000
Accumulated Depreciation â Buildings
48,000 Allowance for Uncollectible
Accounts
15,000
Accounts Payable
41,000 Sales 433,000
Gain on Sale of Equipment
62,000 Mortgage Payable ($12,000 S/T) 144,000
Land
50,000 Sales Returns & Allowances 12,000
Bad Debt Expense
2,000 Depreciation Expense 11,000
L/T Investments
7,000 Cost of Goods Sold 109,000
Notes Receivable ($2,000 S/T)
13,000 Interest Revenue 3,000
A) NET INCOME (10 points) â SHOW ALL WORK ANDCALCULATIONS!!!!
B) CLASSIFIED BALANCE SHEET (15 points)
Perfect Reb Corporation
Balance Sheet
December 31, 2015
ASSETS LIABILITIES
Current Assets Current Liabilities
Total Current Liabilities
Total Current Assets
Long-Term Assets Long-Term Liabilities
Total Long-Term Assets Total Long Term Liabilities
Fixed Assets
Total Liabilities
EQUITY
Total Fixed Assets
Total Equity
TOTAL ASSETS
TOTAL LIABILITIES & EQUITY
C) RATIOS AND ANALYSIS (15 points):
Use the financial statements and additional information tocalculate the ratios. Round your answers to two decimal
places. Be sure to label your answer correctly (example, %,times, days, etc.). IF AN ANSWER SHOULD BE
EXPRESSED AS A PERCENTAGE, DO NOT LEAVE IT IN DECIMAL FORM!!!!(i.e. 0.5015 = 50.15%!!!!)
Previous (December 31, 2014) year end balances for:
Accounts receivable, net of allowance $2,000
Inventory 15,000
Stockholdersâ Equity 139,000
Market price per share for one share of common stock at Dec 31,2015 $94.50/share
Dividend per share for one share of common stock for FYE Dec 31,2015 $1.25/share
No new shares of common stock were issued during 2015. Thecompanyâs credit policy is net 15.
RATIO CALCULATION ANSWER
1) Quick (Acid-Test) Ratio (2 points)
2) Dividend Yield (2 points)
3) Gross Profit Percentage (2 points)
4) Average Daysâ Sales Uncollected 2 points)
5) Inventory Turnover (2 points)
6) Price-Earnings Ratio (2 points)
7) Using the liquidity ratios (and general accepted norms forthe current ratio and quick/acid-test ratio), comment
on the companyâs financial position. (3 points)
Related questions
The following accounts (in no particular order) are for PerfectReb Corporation for the fiscal year ended December 31, 2015. (S/T =Short-Term; L/T = Long-Term)
REQUIRED:
A) Calculate Perfect Reb Corporationâs netincome or net loss for the 2015 fiscal year. You may solve this inany
manner that you wish, but it is highly recommended to prepare amultiple step income statement.
B) Using proper form, prepare Perfect RebCorporationâs balance sheet for 2015.
C) Using the information provided, solve forthe requested ratios and respond to the correspondingquestions.
Common Stock (13,000 shares outstanding) | $52,000 | Sales Discounts | $5,000 | |
Accrued Expenses (Payables) | 20,000 | Income Tax Expense (25% of IBIT) | ??? | |
Miscellaneous Operating Expenses | 50,000 | Cash | 142,000 | |
Accounts Receivable | 20,000 | Interest Expense | 4,000 | |
Buildings | 186,000 | Marketable Securities | 62,000 | |
Retained Earnings | ??? | Notes Payable (due in 5 years) | 12,000 | |
Wages Expense | 60,000 | Rent Expense | 11,000 | |
Inventory | 40,000 | Unearned Revenue | 19,000 | |
Accumulated Depreciation â Buildings | 48,000 | Allowance for Uncollectible Accounts | 15,000 | |
Accounts Payable | 41,000 | Sales | 433,000 | |
Gain on Sale of Equipment | 62,000 | Mortgage Payable ($12,000 S/T) | 144,000 | |
Land | 50,000 | Sales Returns & Allowances | 12,000 | |
Bad Debt Expense | 2,000 | Depreciation Expense | 11,000 | |
L/T Investments | 7,000 | Cost of Goods Sold | 109,000 | |
Notes Receivable ($2,000 S/T) | 13,000 | Interest Revenue | 3,000 |
A) NET INCOME (10 points) â SHOW ALL WORK ANDCALCULATIONS!!!!
B) CLASSIFIED BALANCE SHEET (15 points)
Perfect Reb Corporation Balance Sheet December 31,2015 | ||||||
ASSETS | LIABILITIES | |||||
Current Assets | Current Liabilities | |||||
Total Current Liabilities | ||||||
Total Current Assets | ||||||
Long-Term Assets | Long-Term Liabilities | |||||
Total Long-Term Assets | Total Long Term Liabilities | |||||
Fixed Assets | ||||||
Total Liabilities | ||||||
EQUITY | ||||||
Total Fixed Assets | ||||||
Total Equity | ||||||
TOTAL ASSETS | TOTAL LIABILITIES & EQUITY | |||||
C) RATIOS AND ANALYSIS (15 points):
Use the financial statements and additional information tocalculate the ratios. Round your answers to two decimalplaces. Be sure to label your answer correctly (example,%, times, days, etc.). IF AN ANSWER SHOULD BE EXPRESSED ASA PERCENTAGE, DO NOT LEAVE IT IN DECIMAL FORM!!!! (i.e. 0.5015 =50.15%!!!!)
Previous (December 31, 2014) year end balancesfor:
Accounts receivable, net of allowanceInventory
Stockholdersâ Equity
Market price per share for one share of common stock atDec 31, 2015 Dividend per share for one share of common stock forFYE Dec 31, 2015
$2,000 15,000 139,000
$94.50/share $1.25/share
No new shares of common stock were issued during 2015.The companyâs credit policy is net 15.
RATIO | CALCULATION | ANSWER |
1) Quick (Acid-Test) Ratio (2points) | ||
2) Dividend Yield (2points) | ||
3) Gross Profit Percentage (2points) | ||
4) Average Daysâ Sales Uncollected 2points) | ||
5) Inventory Turnover (2points) | ||
6) Price-Earnings Ratio (2points) |
7) Using the liquidity ratios (and generalaccepted norms for the current ratio and quick/acid-test ratio),comment on the companyâs financial position. (3points)
The Diversified Portfolio Corporation provides investment adviceto customers. A condensed income statement for the year endedDecember 31, 2013, appears below: |
| Service revenue | $ | 940,000 |
| Operatingexpenses | 720,000 | |
| Income before incometaxes | 220,000 | |
| Income taxexpense | 66,000 | |
| Net income | $ | 154,000 |
| The following balance sheetinformation also is available: |
| 12/31/13 | 12/31/12 | |||
| Cash | $ | 315,000 | $ | 72,000 |
| Accountsreceivable | 124,000 | 102,000 | ||
| Accounts payable(operating expenses) | 74,000 | 62,000 | ||
| Income taxespayable | 12,000 | 19,000 | ||
| In addition, thefollowing transactions took place during the year: | |
| 1. | Common stock was issued for$104,000 in cash. |
| 2. | Long-term investments were sold for $52,000 in cash. Theoriginal cost of the investments also was $52,000. |
| 3. | $82,000 in cash dividends waspaid to shareholders. |
| 4. | The company has no outstandingdebt, other than those payables listed above. |
| 5. | Operating expenses include$32,000 in depreciation expense. |
| Required: | |||||
1. | Prepare a statement of cash flows for 2013 for the DiversifiedPortfolio Corporation. Use the direct method for reportingoperating activities. (Amounts to be deducted should beindicated with a minus sign) | ||||
| |||||
Could you please help me in the following questions. Could youplease take a screenshot of the final cash flow statement etc.Cheers
Regards
Adam
Statement of Cash Flows
You are provided the following financial information for TomHill Form Works, a company specialising in the production ofmoon-sized Imperial battle stations:
Tom HillForm Works
COMPARATIVE BALANCE SHEETS
AS AT 30th JUNE
2015 | 2014 | |||
$'000's | $â000's | |||
Current Assets | ||||
Cash on Hand | 35 | 12 | ||
Cash at Bank | 209 | 98 | ||
Accounts Receivable (net) | 58 | 54 | ||
Inventory | 310 | 330 | ||
Prepaid Expenses | 35 | 647 | 33 | 527 |
Non-Current Assets | ||||
Planet destroying Laser | 840 | 760 | ||
less Acc. Depreciation | 440 | 400 | 408 | 352 |
Buildings | 80 | 180 | ||
Total Assets | 1 127 | 1 059 | ||
Current Liabilities | ||||
Bank Overdraft | 20 | - | ||
Accounts Payable | 64 | 80 | ||
Accrued Stormtroopers wages | 63 | 89 | ||
Loan | 12 | 159 | - | 169 |
Non-Current Liabilities | ||||
Loan | 18 | - | ||
Total Liabilities | 177 | 169 | ||
Net Assets | 950 | 890 | ||
Equity | ||||
T.Hill, Capital | 950 | 890 | ||
Tom Hill Form Works
INCOME STATEMENT
FOR THE YEAR ENDED 30th JUNE2015
$'000's | |||||
Net Sales | 1 990 | ||||
COS | 1 300 | ||||
Less: Discount received | 5 | 1 295 | |||
Gross Profit: | 695 | ||||
Other Revenue: | |||||
Gain on sale of building | 60 | ||||
Interest received | 8 | ||||
763 | |||||
Expenses: | |||||
Selling & Admin Expense | 517 | ||||
Doubtful Debts Expense | 9 | ||||
Interest Expense | 12 | 538 | |||
Profit | 225 | ||||
Additional Information:
Selling & Admin Expense includes depreciation expense of$32,000.
The owner T.Hill, contributed $20,000 during the year
A new planet destroying laser was purchased by extending theloan, and paying the balance in cash
A building which had originally cost $100,000 was sold for$160,000 cash, making the business a gain of $60,000
REQUIRED:
Answer this question on the pro formaprovided
a. Using the template provided below, prepare a statement ofcash flows. Show all calculations on the proforma.
b. The owner of Tom Hill Form Works canât understand why the cash flowfrom operations is so different to the profit figure. As he has atendency to react quite badly to negativenews, carefully explain to Mr Hill at least two ofthe factors that may be causing thisdifference.
c. Explain what information is provided by a Statement of Cash Flowthat is not provided by the other General Purpose Financial Reportsyou have been introduced to in this unit (Income Statement,Statement of Changes in Equity & BalanceSheet)?
Tom Hill Form Works
Cash Flow Statement
FOR THE YEAR ENDED 30thJUNE 2015
$â000 | $â000 | ||
Cash Flows from Operating Activities | |||
Receipts from customers | |||
Payments to suppliers & employees | |||
Cash generated by operations | |||
Interest received | |||
Interest paid | |||
Cash Flows from Investing Activities | |||
Proceeds from sale of buildings | |||
Payment for Laser | |||
Cash Flows from Financing Activities | |||
Contribution by owner | |||
Drawings | |||
Net increase / decrease in cash held | |||
Cash at the beginning of the year | |||
Cash at the end of the year |
ALL WORKINGS MUST BE PRESENTED BELOW OR THE CASHFLOWSTATEMENT WILL RECEIVE NO MARKS
