210 P2-3A You are provided with the following information for Lazuris Enterprises, effective Prepare financial statements. as of its April 30, 2017 year-end. (LO 1). AP Accounts payable $ 834 Accounts receivable 810 Accumulated depreciation-equipment 670 Cash 1,270 Common stock 900 Cost of goods sold 1.060 Depreciation expense 335 Dividends 325 Equipment 2.420 Income tax expense 165 Income taxes payable 135 Insurance expense Interest expense 400 Inventory 967 Land 3,100 Mortgage payable 3,500 Notes payable 61 Prepaid insurance 60 Retained earnings (beginning) 1,600 Salaries and wages expense 700 Salaries and wages payable 222 Sales revenue 5,100 Stock investments (short-term) 1,200 Instructions (a) Prepare an income statement and a retained earnings statement for Lazuris Enter (a) Net income $2,230 prises for the year ended April 30, 2017 (6) Tot current assets $4,307 (b) Prepare a classified balance sheet for Lazuris Enterprises as of April 30, 2017 Tot, assets 59,157 Compute ratios: comment on relative profitability, liquidity and solvency: (LD2), AN P2.4A Comparative financial statement data for Loeb Corporation and Bowsh Corpora- tion, two competitors, appear below. All balance sheet data are as of December 31, 2017 Loeb Corporation Bowsh Corporation 2017 2017 Net sales $1,800,000 $620,000 Cost of goods sold 1,175,000 340,000 Operating expenses 283,000 98,000 Interest expense 9,000 3,800 Income tax expense 85,000 36,000 Current assets 407,200 190,336 Plant assets (net) 532,000 139,728 Current liabilities 66,325 33,716 Long-term liabilities 108.500 40,684 Net cash provided by operating activities 138,000 36,000 Capital expenditures 90.000 20,000 Dividends paid on common stock 36.000 15,000 Weighted average number of shares outstanding 80,000 50,000 80 2 A Further Look at Financial Statements Instructions (a) Comment on the relative profitability of the companies by computing the net income and earnings per share for each company for 2017. (b) Comment on the relative liquidity of the companies by computing working capital and the current ratio for each company for 2017 (c) Comment on the relative solvency of the companies by computing the debt to assets ratio and the free cash flow for each company for 2017. faham Caninany P3-2A Nona Curry started her own consulting firm. Curry Consulting Inc., on May 1 Analyze transactions and 2017. The following transactions occurred during the month of May. mware financial statements May 1 Stockholders invested $15,000 cash in the business in exchange for com (LO 12)AP mon stock 2 Paid $600 for office rent for the month. GLS 3 Purchased $500 of supplies on account. 5 Paid $150 to advertise in the County News 9 Received $1.400 cash for services performed. 12 Paid $200 cash dividend. 15 Performed $4,200 of services on account 17 Paid $2,500 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,200 for services performed on account on May 15 26 Borrowed $5,000 from the bank on a note payable 29 Purchased office equipment for $2,000 paying $200 in cash and the balance on account 30 Paid $180 for utilities Instructions (a) Show the effects of the previous transactions on the accounting equation using the (a) Cash $18.270 following format. Assume the note payable is to be repaid within the year. Total assets 523,770 Assets Liabilities Accounts Notes Accounts Common Date Cash + Receivable + Supplies - Equipment - Payable Payable + Stock Stockholders' Equity Retained Earnings + Revenues - Expenses Dividends (by Net income $2,170 Include margin explanations for any changes in Retained Earnings. (b) Prepare an income statement for the month of May 2017 (c) Prepare a classified balance sheet at May 31, 2017