Financial statements: Financial statements refer to those statements, which are prepared by the Company according to particular formats in accounting to show its financial position.
Income statement: Income statement is a financial statement that shows the net income or net loss by deducting the expenses from the revenues and vice versa.
Statement of
Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.
To Prepare: The income statement, statement of stockholder's equity and balance sheet for G Investments, at the end of the year.
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Financial accounting
- Chandler Sporting Goods produces baseball and football equipment and lines of clothing. This year the company had cash and marketable securities worth $335,485, accounts payables worth $1,159,357, inventory of $1,651,599, accounts receivables of $1,488,121, short-term notes payable worth $313,663, and other current assets of $121,427. What is the company's net working capital? $3,596,632 $1,801,784 $2,123,612 $1,673,421arrow_forwardSmart Inc. provided the following data for the current year: Retained earnings, January 1 3,000,000Dividends declared 1,000,000Sales 8,350,000Dividend income 100,000Inventory, January 1 1,040,000Purchases 3,720,000Salaries 1,540,000Contribution to employees' pension fund 280,000Delivery 205,000Miscellaneous expenses 125,000Doubtful accounts expense 10,000Depreciation expense 85,000Loss on sale of securities 40,000Loss on inventory writedown 150,000Income from discontinued operation, net of tax 500,000Income tax expense 105,000Inventory on December 31 (P850,00 less P150,000 write-down of obsolete inventory) 700,000 4. What is the amount of cost of goods sold? 5. What is the total amount of expenses before income tax? 6. What is the net income for the current year?a. 2,000,000b. 2,500,000c. 1,500,000d. 2,650,000 7. What is the balance of retained earnings on December 31, 2021?arrow_forwardWorking capital: Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities worth $1,236,761, accounts payables worth $4,159,857, inventory of $7,122,108, accounts receivables of $3,488,872, notes payable worth $1,152,718, and other current assets of $121,748. What is the company’s net working capital?arrow_forward
- The balance sheet for Shaver Corporation reported the following: cash, $5,000; short-terminvestments, $10,000; net accounts receivable, $35,000; inventory, $40,000; prepaids, $10,000;equipment, $100,000; current liabilities, $40,000; notes payable (long-term), $70,000; total stockholders’ equity, $90,000; net income, $3,320; interest expense, $4,400; income before incometaxes, $5,280. Compute Shaver’s debt-to-assets ratio and times interest earned ratio. Based onthese ratios, does it appear Shaver relies mainly on debt or equity to finance its assets? Is it probable that Shaver will be able to meet its future interest obligations?arrow_forwardData pertaining to the current position of Lucky Industries are as follows:Cash $ 800,000,Marketable securities 550,000 , Account receivable 450,000, notes receivable 400,000,Inventories 700,000, Prepaid expenses 300,000, Accounts payable 1,200,000, Notes payable (short-term) 700,000Accrued expenses 100,000Required:1. Compute (a) the working capital and (b) the quick ratio from the above data. 2. Compute the working capital and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given above. Only that ratio be calculated in each case (transaction) which changes due to that transaction> a. Sold marketable securities at no gain or loss, $500,000.b. Paid accounts payable, $287,500.c. Purchased goods on account, $400,000.d. Paid notes payable, $125,000.e. Declared a common stock dividend on common stock, $150,000.f. Received cash on…arrow_forwardWhat does the company report for the following accounts for the most current fiscal year: Enter your answer in millions. Total Assets: 70,581 Total Liabilities: 67,282 Long-Term debt: 35,822 Other long-term liabilities: 8,294 Operating Income: 18,278 Interest expense: 1,347 2. The company projects the following for the next fiscal year: • Total assets will increase by 5%.• Total liabilities will increase by 6%.• Long-term debt and interest expense will increase by 7%.• Operating income will increase by $750 million. a. Total assets: 74,100 b Total liabilities: 71,319 c. Long-term debt: 38,330 d. operating income: 19,028 e. Interest expense: Provide the next year’s forecasted balances for the above accounts. Round your answer to the nearest million. 1. Compute the forecasted debt to equity ratio for the next fiscal year. Round your answer to two decimal places. 2. Compute the forecasted long-term debt to equity ratio for the next fiscal year. Round your answer to two decimal…arrow_forward
- Presented below are summary financial data from the Blue Devil Corp.’s annual report: Balance Sheet Cash $2,200 Marketable Securities 16,200 Accounts Receivable 10,000 Total Current Assets 42,000 Total Assets 155,000 Current Liabilities 25,000 Long-term Debt 52,500 Shareholders’ Equity 79,500 Income Statement Interest Expense 6,400 Net Income Before Taxes 37,800 Calculate the Times-interest-earned ratio, Current ratio, and Quick ratio (Round to 2 decimal points).arrow_forwardBudoy Company reported the following assets and liabilities at year end: Cash 200,000 Accounts Payable 1,500,000 Trading Debt Investments 400,000 Accrued expenses 300,000 Accounts Receivable 2,500,000 Long-term note payable 2,000,000 Allowance for doubtful accounts 300,000 Bonds Payable 5,000,000 Inventory 3,000,000 Premium on Bonds Payable 100,000 Equipment 5,000,000 Differed Revenue 600,000 Patent and trademark 400,000 Long-term receivables…arrow_forwardBarts Industries, Inc., has total assets as follows: $50,000 in cash, $15,000 in short-term investments, $120,000 in net current receivables, inventory of $25,000, equipment of $80,000, and $8,000 in prepaid expenses. The total long-term liabilities of the firm are $140,000 and total liabilities are $260,000. Based solely on the above information, Barts Industries' current ratio is (round to two decimal places): O 1.54 O 1.75 O 1.82 O 1.85 O 1.50arrow_forward
- The Butler-Huron Company’s balance sheet and income statement for last year are as follows:Balance Sheet (in Millions of Dollars) Assets Liabilities and Equity Cash and marketable securities $142 Accounts payable*** $808Accounts receivable* 941 Accrued liabilities Inventories** 1,607 (salaries and benefits) 508Other current assets 35 Other current liabilities 534Total current assets $2,725 Total current liabilities $1,850Plant and equipment (net) 3,029 Long-term debt and other Other assets 5,796 liabilities 2,228Total assets $5,796…arrow_forwardBarts Industries, Inc., has total assets as follows: $50,000 in cash, $15,000 in short- term investments, $120,000 in net current receivables, inventory of $25,000, equipment of $80,000, and $8,000 in prepaid expenses. The total long-term liabilities of the firm are $140,000 and total liabilities are $260,000. Based solely on the above information, Barts Industries' current ratio is (round to two decimal places): Answer:arrow_forwardStale Bread Co. had net income in the current year of $700,000. Depreciation expense for the year was $80,000. Between the beginning and the end of the current year the company's accounts payable (all to suppliers of raw materials) increased $100,000 while accounts receivables from customer sales also increase by $150,000. The company also issued a long-term bond payable in exchange for receiving $300,000 cash. Compute the amount of cash provided or used for OPERATING ACTIVITIES, only, by the indirect method.arrow_forward
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