ATTACHMENT A

Financial Statements

Practice Set

At the end of $2018,$ the Zedo Company has $$100,000$ in accumulated depreciation and $$120,000$ in retained earnings.

$20192020$

Sales $$600,000$ $$700,000$

Notes Payable $45,00075,000$

Tax Rate $40\%40\%$

Gross Fixed Assets $$800,000$ $$1,000,000$

Total Current Liabilities $330,000290,000$

Interest Expense $30,00040,000$

Cash $20,00030,000$

Accounts Payable $190,000160,000$

Total Current Assets $340,000320,000$

Total Liabilities $400,000380,000$

Net Income $24,00048,000$

Accounts Receivable $140,000160,000$

Dividends $14,00018,000$

Operating Expenses before $70\%$ of sales $70\%$ of sales

Depreciation$/$Amortization

$$ Complete the Income Statement and Balance Sheet

$$ Complete the Statement of Cash Flows

$$ Address the ratios on the following pages

Calculate for $2020$:

a$.$ Inventory turnover

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

b$.$ Accruals

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

c$.$ Debt ratio

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

d$.$ Common Stock

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

e$.$ Net fixed assets turnover

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

f$.$ Cash flow from operating activities

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

g$.$ Cash flow from financing activities

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

h$.$ Cash flow from investing activities

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer

i$.$ Net Operating Working Capital

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Answer