Given the profit loss (income statement) and balance sheet for Sam's Sandwich Delivery (Table 4-8), answer the following:
e. Perform a vertical analysis of the balance sheet.
f. Based on your analysis, would you consider investing in Sam's Sandwich Delivery?
TABLE 4-8 Financial Statements for Sam's Sandwich Delivery Profit Loss (Income Statement) for Six Months Ending June 30, 2013 Revenues Retail Sales $68,283 Wholesale Sales Total Revenues 104,417 Cost of Sales $172,700 52,067 Gross Profit Total Operating Expenses $120,633 ton 111,117 Operating Profit DO Other Income/Expenses $ 9,516 Interest Income 41 Interest Expense Depreciation Store Equipment (651) Total Other Income/Expenses (292) Net Profit (902) $ 8,614 Balance Sheet as of 06-30-2013 Assets Current Assets Change Fund $ 569 Cash in Bank-Checking TULIZA MA 8,612 AM Cash in Bank-Savings 9,622 Accounts Receivable 6,843 Inventories Total Current Assets na seds yo boh 2,607 $28,253 Fixed Assets ud og blot to the Furniture and Fixtures eos 4,296 te o solo Less: Accum Depreciation 4,110 of 186 Equipment 68,293 Less: Accum Depreciation 67,725 568 Transportation Equipment Less: Accum Depreciation 11,571 19,597 Total Fixed Assets bo blodsson $20,351 Total Assets nowbito $48,604 Current Liabilities Accounts Payable Trade 6,208 ht Accrued Payroll Taxes 3,464 Accrued Sales Taxes 987 Total Current Liabilities $10,659 Long-Term Liabilities Auto Loans Payable EA 18,626 YOUT2 25 Total Long-Term Liabilities $18,626 Total Liabilities $29,285 Stockholder's Equity Common Stock 83,081 Retained Earnings (72,376) Net Profit/Loss 8,614 Total Equity 19,319 Total Liabilities and Equity to $48,604 31,168 anos TABLE 4-8 Financial Statements for Sam's Sandwich Delivery Profit Loss (Income Statement) for Six Months Ending June 30, 2013 Revenues Retail Sales $68,283 Wholesale Sales Total Revenues 104,417 Cost of Sales $172,700 52,067 Gross Profit Total Operating Expenses $120,633 ton 111,117 Operating Profit DO Other Income/Expenses $ 9,516 Interest Income 41 Interest Expense Depreciation Store Equipment (651) Total Other Income/Expenses (292) Net Profit (902) $ 8,614 Balance Sheet as of 06-30-2013 Assets Current Assets Change Fund $ 569 Cash in Bank-Checking TULIZA MA 8,612 AM Cash in Bank-Savings 9,622 Accounts Receivable 6,843 Inventories Total Current Assets na seds yo boh 2,607 $28,253 Fixed Assets ud og blot to the Furniture and Fixtures eos 4,296 te o solo Less: Accum Depreciation 4,110 of 186 Equipment 68,293 Less: Accum Depreciation 67,725 568 Transportation Equipment Less: Accum Depreciation 11,571 19,597 Total Fixed Assets bo blodsson $20,351 Total Assets nowbito $48,604 Current Liabilities Accounts Payable Trade 6,208 ht Accrued Payroll Taxes 3,464 Accrued Sales Taxes 987 Total Current Liabilities $10,659 Long-Term Liabilities Auto Loans Payable EA 18,626 YOUT2 25 Total Long-Term Liabilities $18,626 Total Liabilities $29,285 Stockholder's Equity Common Stock 83,081 Retained Earnings (72,376) Net Profit/Loss 8,614 Total Equity 19,319 Total Liabilities and Equity to $48,604 31,168 anos
