List of Accounts Unearned Revenue $2,000.00 Trading Securities $395.00 Total Own

ID: 2454436 • Letter: L

Question

List of Accounts

Unearned Revenue

$2,000.00

Trading Securities

$395.00

Total Owners Equity (12/31/14)

$102,380.00

Total Liabilities (12/31/14)

$26,120.00

Total Current Liabilities (12/31/14)

$15,230.00

Total Current Assets (12/31/14)

$77,301.00

Total Assets (12/31/14)

$128,500.00

Selling Expense

$8,000.00

Sales Tax Payable

$582.00

Sales Returns

$4,600.00

Research & Development

$9,832.00

Rent Revenue

$1,001.00

Purchase Returns & Allowances

$1,200.00

Purchase Discounts

$826.00

Property/Plant/Equipment

$32,746.00

Prepaid Expenses

$2,560.00

Other Long Term Assets

$3,280.00

Other Expense

$378.00

Operating Activities - Net Cash Inflow

$3,000.00

Notes Payable - Maturity 2017

$2,992.00

Investing Activities - Net Cash Inflow

$6,000.00

Inventory

$4,200.00

Interest Payable (Current)

$1,900.00

Intangibles, Net

$4,607.00

Income Taxes Payable

$3,550.00

Held to Maturity Investments

$3,079.00

Gross Sales Revenue

$80,000.00

Goodwill, Net

$15,599.00

General Expense

$982.00

Financing Activities - Net Cash Outflow

$4,000.00

Estimated Warranty Liability

$1,949.00

Dividends

$132.00

Deferred Income Tax

$1,971.00

Cost of Goods Sold

$25,313.00

Common Stock, Total

$0.68

Cash & Equivalents (Beginning Bal. 1/1/2015)

$59,000.00

Capital Lease Obligation

$2,245.00

Bond Payable (Maturity 2020)

$4,562.00

Allowance for Doubtful Accounts

$2,400.00

Administrative Expense

$5,000.00

Additional Paid-In Capital

$29,187.32

Accumulated Depreciation, Total

$8,863.00

Accrued Wage & Salary

$3,100.00

Accounts Receivable

$13,249.00

Accounts Payable

$1,715.00

Additional Information:

Prepayment for future services/goods will be earned in 2016.

During 2015, the company repurchased common stock for $394.

Warranty Liability represents expected repairs in 2016.

Deferred Income Tax will reverse in 2017.

Inventory balance of $4,200 does not include adjustments for returns, allowances and discounts.

The current portion of Total Capital Lease Obligation is $2,009.

Dividends of $132 were declared and distributed in 2015.

The company's reporting period is the same as a calendar year.

Income Tax Rate is 30%

Sales Allowances were 10% of Gross Sales.

Sales Discounts were 3% of Gross Sales.

Total Owners' Equity on 12/31/2015 is $103,860

Required:

1. Using Microsoft Excel, prepare an Income Statement for the year ended 2015.

- Show the % of each revenue item in relation to total revenues.

- Show the % of each expense item in relation to total expenses.

2. Using Microsoft Excel, prepare a Balance Sheet for the year ended 2015.

- Show the % of each asset in relation to total assets.

- Show the % of each liability in relation to total liabiities.

3. Compute the Current Ratio for 2015. (Current Assets / Current Liabilities).

4. Compute the Debt to Asset Ratio for 2015. (Liabilities / Assets)

5. Compute the Gross Profit Margin for 2015 (Gross Profit / Total Revenue)

6. Compute the Net Profit Margin for 2015 (Net Income / Total Revenue)

7. Compute Return on Assets for 2015 (Net Income / Average Assets)

8. Compute Return on Equity for 2015 (Net Income / Average Equity)

9. Comparing the year 2015 to 2014, is the company more liquid or less liquid in 2015?

10. Comparing the year 2015 to 2014, is the company more solvent or less solvent in 2015?