Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can anyone help with this? please see attachment. both tabs and show work. Problem 1 - Financial Statement Analysis Complete the yellow highlighted cells on
can anyone help with this? please see attachment. both tabs and show work.
Problem 1 - Financial Statement Analysis Complete the yellow highlighted cells on the balance sheet and income statement using the following information: 2010 2009 Accounts Receivable $1,200,000 $1,000,000 Allowance for Doubtful Accounts 35,000 50,000 Income Tax Expense 100,000 120,000 Blue Bill Corporation Income Statement For the year ended 2010 2010 $4,250,000 $2,220,000 2009 $5,175,000 $2,605,000 $650,000 $120,000 $720,000 $115,000 $0 $15,000 Net sales Cost of goods sold Gross Profit Operating Expenses Other Expenses Earnings Before Interest and Taxes (EBIT) Net interest expenses Income Tax Expense Net Earnings Earnings per share (1,250 shares issued) Blue Bill Corporation Balance Sheet December 31, 2010 2010 Current assets Cash and cash equivalents Accounts receivable Less: Doubtful accounts Inventory Other current assets Total current assets Net property, plant, and equipment Other assets Total assets Current liabilites Accounts payable Other current liabilities Long-term debt Equity Total liabilities and equity 2009 $500,000 $450,000 $2,912,000 $45,000 $1,980,000 $50,000 $250,000 $16,000 $200,000 $15,000 $1,000,000 $35,000 $900,000 $900,000 $22,000 $930,000 $1,793,000 Problem 2 - Ratio Analysis Compute the ratios below for Blue Bill Corporation based on the financial statements provided. Ending inventory was $1,237.6 for year 2010. After calculating the various ratios, analyze the overall financial health of Blue Bill Corporation. Values presented on the financial statements are in millions. Assets Current Assets Cash and cash equivalents Receivables (net of allowance) Inventories Other current assets Total current assets Property, plan and equipment Land Buildings Equipment Less accumulated depreciation Total property, plant and equipment Other noncurrent assets Total assets Blue Bill Corporation Balance Sheet December 31, 2011 Liabilities and Shareholders' Equity Current liabilities $ 483.2 Short-term debt 1,045.1 Long-term debt due within a year 1,249.4 Accounts payable 273.5 Other accrued liabilities 3,051.2 Total current liabilities 77.1 842.4 3,546.0 2,373.7 2,091.8 4,932.6 $ 10,075.6 Ratio analysis Liquidity ratios: Current ratio Quick ratio Activity ratios: Inventory turnover Receivables turnover Days sales outstanding Fixed asset turnover Total asset turnover Profitability ratios: Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity Leverage ratios: Debt / Net worth Debt ratio Coverage ratios: Times-interest-earned Analysis of Blue Bill Corporation's financial health Long-term liabilities Long-term debt Deferred taxes Other long-term liabilities Total long-term liabilities Shareholders' equity Total liabilities and shareholders' equity Blue Bill Corporation Income Statement 2011 $ 43.4 151.6 1,007.7 972.7 2,175.4 4,559.4 665.3 784.2 6,008.9 1,891.3 $ 10,075.6 Sales Cost of products sold Gross Profit Selling and administrative expense Operating income Other income Earnings before interest and taxes Interest expense Taxes Net income $ 10,495.0 6,700.5 3,794.5 2,350.9 1,443.6 (18.3) 1,425.3 295.2 247.8 $ 882.3Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started