Question
Figure 1.NSU Unlimited, Inc. End-of-Year Balance Sheets 201720182019 Cash 302030 Accounts receivable200395430 Inventory400510640 Current assets 6309251100 Gross fixed assets100010001650 Accumulated depreciation180220280 Net fixed assets8207801370 Total
Figure 1.NSU Unlimited, Inc.
End-of-Year Balance Sheets
201720182019
Cash 302030
Accounts receivable200395430
Inventory400510640
Current assets 6309251100
Gross fixed assets100010001650
Accumulated depreciation180220280
Net fixed assets8207801370
Total assets145017052470
Accounts payable 250300375
Accruals 200260315
Notes payable100150280
Current liabilities550710970
Long-term debt (bonds)500500750
Preferred stock 000
Common stock 2525125
Paid-in capital 7575175
Retained earnings300395450
Totalliab& equity145017052470
NSU Unlimited, Inc.
Income Statements
201720182019
Sales400048005800
Operating expenses 364045205560
Depreciation expense 404060
EBIT 320240180
Interest expense405070
EBT 280190110
Taxes (40%)1127644
NI 16811466
Total cash dividends 111911
- Use the information above and the format given below to make a Statement of Cash Flows for NSU Unlimited, Inc. for 2019.
NSU Unlimited, Inc.
Statement of Cash Flows for 2019
Operating Activities
Net Income
Adjustments:
Non-cash adjustments
Accumulated depreciation
Changes in working capital
Change in accounts receivable
Change in inventories
Change in accounts payable
Change in accruals
Net cash provided by Operating Activities
Long-Term Investment Activities
Cash used to acquire fixed assets
Financing Activities
Change in notes payable
Change in long-term debt
Change in preferred stock
Change in common stock
Change in paid-in capital
Payment of cash dividends
Net cash provided by Financing Activities
Summary
Net change in cash
Cash at beginning of year
Cash at end of year
2. Refer to balance sheet and income statement above and answer each of the following questions.
A.What is the company's current ratio for 2019? What is the current ratio for 2018?
B.Whatis the company's quick ratio (acid test ratio) for 2019? What is the company's quick ratio (acid test ratio) for 2018?
C.Whatis the company's net profit margin for 2019? What is the company's net profit margin for 2018?
D.Whatis the company's total asset turnover for 2019? What is the company's total asset turnover for 2018?
E.Whatis the company's debt ratio for 2019? What is the company's debt ratio for 2018?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
7th Canadian edition
1119368456, 978-1119211587, 1119211581, 978-1119320623, 978-1119368458
