FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Compute for the following:
1.
2. Quick Ratio
3. Debt Ratio
4. Equity Ratio
Transcribed Image Text:ull Globe LTE
17:34
O O 26%
Done
03_Handout_1(12).pdf
ESTI
SH1663
Sample Financial Statements
Verona Carinderia
Verona Carinderia
Income Statement
December 21, 20AA
Amount
Percent
Net Sales
7,457,736
100%
Less: Cost of Goods Sold
6,228,552
84%
Gross Profit
1,229,184
16%
Less: Other Expenses
886,177
12%
Operating Income
Less: Interest Expense
343,007
4%
74,208
1%
Net Income
268,799
3%
Verona Carinderia
Balance Sheet
December 31, 20AA
Amount
Percent
Cash
91,626
2.3%
Net Accounts Receivable
939,460
24.0%
Inventories
1,836,634
46.8%
Prepaid Rent
180,000
4.6%
Total Current Assets
3,047,720
77.7%
Equipment and Fixtures
Less: Accumulated Depreciation
1,280,961
32.7%
406,728
10.4%
Total Fixed Assets
874,233
22.3%
TOTAL ASSETS
3,921,953
100%
Accounts Payable
467,376
11.9%
Notes Payable
321,000
8.2%
Accruals
436,560
11.1%
Total Current Liabilities
1,224,936
31.2%
Long-term Debt
Owner's Capital
608,000
15.5%
2,089,017
53.3%
TOTAL LIABILITIES AND CAPITAL
3,921,953
100%
*Property of STI
Page 1 of 2
03 Handout 1
STI
SH1663
Shoppersville Trading
Shoppersville Trading
Comparative Income Statements
For the years ended 2016 and 2015
2016
2015
Amount
Net Sales
1,080,000
900,000
20.0%
Less: Cost of Goods Sold
636,000
504,000
26.2%
Gross Profit
444.000
396.000
12 1%
Transcribed Image Text:Total Current Assets
3,047,720
77.7%
ull Globe LTE
17:34
© O 26%
Equipment and Fixtures
Less: Accumulated Depreciation
1,280,961
32.7%
406.728
10.4%
Done
03_Handout_1(12).pdf
100%
Accounts Payable
467,376
11.9%
Notes Payable
321,000
8.2%
Accruals
436,560
11.1%
Total Current Liabilities
1,224,936
31.2%
Long-term Debt
Owner's Capital
608,000
15.5%
2,089,017
53.3%
TOTAL LIABILITIES AND CAPITAL
3,921,953
100%
03 Handout 1
*Property of STI
Page 1 of 2
STI
SH1663
Shoppersville Trading
Shoppersville Trading
Comparative Income Statements
For the years ended 2016 and 2015
2016
2015
Amount
Net Sales
1,080,000
900,000
20.0%
Less: Cost of Goods Sold
636,000
504,000
26.2%
Gross Profit
444,000
396,000
12.1%
Less: Operating Expenses
291,600
204,000
42.9%
Operating Income
Less: Interest Expense
152,400
192,000
-20.6%
28,800
36,000
-20.0%
Income Before Income Tax
123,600
156,000
-20.8%
Less: Income Tax
43,260
54,600
-20.8%
Net Income
80,340
101,400
-20.8%
Shoppersville Trading
Comparative Balance Sheets
For the December 31, 2016 and December 31, 2015
2016
2015
Amount
Cash
208,000
200,000
4.0%
Inventory
260,000
145,600
78.6%
Accounts Receivable
72,000
126,000
-42.9%
Total Current Assets
540,000
471,600
14.5%
Property and Equipment
600,000
560,400
7.1%
TOTAL ASSETS
1,140,000 1,032,000
10.5%
Liabilities and Stockholders' Equity
LIABILITIES
Notes Payable
134,400
112,800
19.1%
Long-term debts
240,000
300,000
-20.0%
Total Liabilities
374,400
412,800
-9.3%
STOCKHOLDERS' EQUITY
Preferred Stock
120,000
120,000
0.0%
Common Stock
300,000
240,000
25.0%
Additional Paid-in Capital
84,000
48,000
75.0%
Retained Earnings
Total Stockholders' Equity
261,600
211,200
23.9%
765,600
619,200
23.6%
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
1,140,000 1,032,000
10.5%
References:
Benito, P. P., Chan Pao, T. P., & Yumang, K. (2016). Exploring small busines and personal finance in senior high.
Quezon City: Phoenix Publishing House.
Lopez-Mariano, N. D. (2014). Elements of finance. Quezon City: Rex Book Store.
03 Handout 1
*Property of STI
Page 2 of 2
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