docs.$3.an X C Clever | Portal X Unit Activity Accountin x V Accounting for Differen x Accountin meets & Slides | chrome extension://bpmcpldpdmajfigpchkicefoigmkfalc/views/app.html If. Adding and Subtra.. New folder of Firms_UA (3) (1).docx Times New ... 22 B / U A - A - Unit Activity Unit: Accounting for Different Types of Firms This activity will help you meet these educational goals: . Content Knowledge-You will analyze financial statements for liquidity, solvency, and profitability. . 21st Century Skills-You will use critical thinking and problem-solving skills, and communicate effectively! Introduction In this activity, you will analyze the annual financial statements of Gerup Garments Inc., an apparel-manufacturing corporation. You will use solvency, liquidity, and profitability ratios to determine the firm's financial condition. Directions and Analysisrms_UA (3) (1).docx Times New ... 22 BTUA ABBEDEE Directions and Analysis Analyze the income statement and balance sheet of Gerup Garments Inc. and perform the assigned tasks. Income Statement for Gerup Garments Inc. for 2021 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YEARLY Revenue (Sales) Garment Sales 205,684 209,722 241,180 246.004 238,624 229.079 233,660 245.344 247.797 252,753 278,028 361,437 2,989,312 Accessor Sales 15,543 15.542 15.542 17.873 8.23 7.68 16.976 17,316 18,182 18.364 18.73 20.60 210.588 Total Revenue (Sales) 221,227 225.264 256,722 263,877 256.855 246.763 250.637 202,660 265,979 271,117 296,759 382.041 3,199,900 Cost of Sales Garments 51,423 52.446 51.925 59,714 60.908 59.081 56.718 57,852 60.744 61,352 62.57 68.837 703,578 ccessories 7.771 7,991 7.887 9.070 9.251 8,974 8.615 8.787 9.22 9.319 10,455 106,850 Total Cost of Sales 9.194 60.43 59.812 08.784 70.159 68.054 65.332 60.639 09.971 70,671 72.084 79.292 810,428 Gross Profit 162033 104.828 196.911 195.094 180.695 . 178.708| 185.305 190.021 196,008 200.446 224,675 302.748 2,389,471 Expenses CTimes New ... Salary expenses 15.550 15.401 15,273 17.564 17.915 17.378 16.683 17,016 17,867 18,046 18,407 20.247 207,347 Payroll expenses 6.400 42,928 43.799 43.799 43.799 43,799 43,799 43,799 43.799 43,799 43,799 43,799 527,315 Supplies (office and operating) 539 568 561 501 561 561 561 501 561 561 501 561 i,719 Repairs and maintenance 958 993 993 993 293 993 993 993 993 993 993 11,870 Advertising 887 869 856 856 856 850 856 856 856 856 856 10 315 Telephone ,300 1,330 1.378 ,378 1,37 1,378 1,378 1,378 .,378 1,378 1,378 1,378 16.407 Utilities 722 736 730 730 750 730 730 730 730 730 730 730 8,75 nsurance 825 866 878 878 878 878 878 878 878 878 878 378 10.469 Taxes (real estate, etc.) 2.500 2.562 2.560 2.566 2.560 2.560 2.560 2,560 2,566 2.566 2.56 1.56 30.715 nterest 802 1,728 800 800 800 800 800 800 800 800 800 10.532 Depreciation 5.206 5.957 5.647 5.647 647 5.647 5,647 5.04 .647 :647 5,647 5 64 67.636 Total Expenses 75.689 73.921 73.481 75.772 76.123 75.580 74.890 75.224 76.075 76.254 70.614 78.45 908.08 Net Profit Before Taxes 86.344 80.907 123.460 119.322 110.572 103,123 10,414 120.797 119.933 124.192 48,06 224.293 1.481.386 ncome Taxes 10.220 31.817 43.200 41.703 38,70 36.092 38.645 42.275 41,97 3.467 51,821 78,503 518. Net Operating Income 56.124 59.090 30.229 -77:559 71.872 67.030 71.769 77.956 80.725 96.235 145.79 962,902 of Docomb C Oilpes of Firms_UA (3) (1).docx mal Times New .. 22 BIU AA- EE Balance Sheet of Gerup Garments Inc. as of December 31, 2021 12/31/2020 12/31/2021 Assets Current Assets Cash in bank $ 57,000 $ 65,000 Accounts receivable 75,000 82,000 Inventory 66,000 75,000 Prepaid expenses 6,000 8,000 Total Current Assets $ 204,000 $ 230,000 Fixed Assets Machinery & equipment $ 25,200 $ 18,000 Total Fixed Assets (net of depreciation) $ 25,200 $ 18,000 TOTAL Assets $ 229,200 $ 248.000 Liabilities and Equity Current Liabilities Accounts payable $ 89,000 $ 90.000 Total Current Liabilities $ 89,000 $ 90 000 2 C 8Times New ... 22- B /UA-A- BBBDEE Long-term Debt Bank loans payable $ 62,000 $ 50,000 Total Long-term Debt $ 62,000 $ 50,000 Total Liabilities $ 151,000 $ 140,000 Owners' Equity 78.200 108,000 Total Liabilities & Equity $ 229,200 $ 248,000 Task 1: Liquidity Analysis Calculate the following ratios in 2021 for Gerup Garments Inc. Write 100 words describing the company's liquidity condition: current ratio quick ratio accounts receivable turnover days sales outstanding inventory turnover average days to sell inventory Type your response here: C Oil &at. 4 Adding and Subtra... New folder s of Firms_UA (3) (1).docx Times New ... 22 BIU A . A . Task 2: Solvency Analysis Calculate the following ratios for Raymond Garments Inc. Write 100 words describing the company's solvency condition: debt-to-assets ratio debt-to-equity ratio interest coverage ratio plant assets to long-term liabilities Type your response here: Task 3: Profitability Analysis Calculate the following ratios for Raymond Garments Inc. Write 100 words describing the 9 CTimes New ... 22 B F U A . A. BE company's profitability condition: . net margin ratio asset turnover ratio return on equity Type your response here: Task 4: Financial Analysis Using your ratios, write 200 words describing the company's overall financial condition. Type your response here: 9 C 110 %