Assignment Questions Q1. From the information given below: (10 Marks) a. Prepare a balance sheet b. Net working capital Cash Account receivables Accounts payable Short-term notes payable Inventories Gross fixed assets Common stock Other current assets Accumulated depreciation Long-term debt Other assets Retained earnings 100,000 72,000 48,000 35,000 70,000 1,750,000 680,000 10,000 524,000 350,000 25,000 (10 Marks) $525.000 $200,000 $62,000 Q2. Sales Cost of goods sold General and administrative expenses Depreciation expenses Interest expense Income taxes 8.000 12.000 97,200 From the information given above, prepare (a) the income statement, and (b) the common-sized income statement. Q3. Prepare a statement of cash flows from the following list of items. (5 Marks) Increase in inventories Operating income Dividends Increase in accounts payables Interest expense Increase in common stock Depreciation expense Increase in accounts receivable Increase in long-term debt Increase in short-term notes payable Increase in gross fixed assets Increase in paid in capital Income taxes Beginning cash 22.000 625,000 55,000 92,500 118.000 22,000 48,000 210,000 145,000 36,500 144,000 60,000 202,000 700.000 Q4. Calculate the following ratios from the Balance Sheet and the Income Statement of Saudi Manufacturing Corporation given below: (5 Marks) a. Current Ratio b. Debt Ratio c. Fixed asset turnover d. Total asset turnover e. Operating profit margin Balance Sheet: Cash Acct Rec Inventories Current assets Net fixed assets Total assets 30.000 72,500 50.000 152,500 240,000 392.500 Accts Pay Accrued expenses Short-term NP Current liabilities Long-term debt Owner's equity Total liabilities and owners equity 44,500 31.000 9,500 85,000 110,000 197,500 392.500 450,000 220,000 230,000 128,000 Income Statement: Net sales COGS Gross profit Operating expenses Net operating income Interest expense EBT Income taxes Net income 102,000 18,500 83,500 33.000 50.500