how do i do a cash flow and a vertical and horizontal analysis?
adjusted trail balance adjusting entries Multi step income statement credit credit $ 574,750 Debit $ 218,996 $ 38,100 $ 1,143 sales 8 Less: sales Dissount Sales Return Net sales Cost of Good Sold Gross Profit $ 218,996 $ 38,100 $ (1,143 $ 68,740 $ 150 $ 275 $ 325, 118 $ $ 2,610 10,000 $ 12,610 $ 562,140 $ 336,160 $ 225.980 $ 68,740 $ 150 $ 275 $ 155,000 $ 320,000 7.143 $ 18,615 $ 280,000 298 299 300 Balance Sheet 301 Current Assets 302 Cash 303 Accounts Receivable 304 Less: allowance for bad debts 305 Inventory B06 supplies 307 prepaid Insurance 308 Total Current Assets 309 Non Curreent assets 310 Land 311 Building 312 Less accumulated Depreciation Bulding 313 Equipent 314 Less accumulated Depreciation Equipment 315 Total non current asset 816 Total assests 317 Current Liabilities 818 accounts Pyable 319 income tax payvabe 320 Interest payable 21 unearned rent B22 notes payable 323 total 324 Equity 325 Common Stock 326 Less treasury stock 327 Capital paid 28 Preferred Stocks B29 Retained earning 330 total 31 Total liabilities and owners equilty 332 333 334 $ 155,000 $ 320,000 $ (18,615) $ 280,000 $ (96,334) $ 640,051 $ 965, 169 $ $ $ $ $ $ Operating Expenses Rent Expenses 7 Supplies Expense Interest Expense Insurance Expense Bad Debts Expense Deprating Expense Total Operating Expenses 3 Operating Income Other Income: Rent Income Net income before tax income tax expense net income after tax 500 1.150 12,200 3,075 899 77,382 Account Cash accounts recevable allowance for bad debits inventory supplies on hand prepaid insurance land building A/D Building Equipment AlD Equipmet accounts payable income tax payable interest payable unearned rent notes payable common stock APIC common stocks Treasuty stooks common preferred stock Apic preferred stocks Retained Earings sales sales discount sales retuns cost of goods sold rent expense supplies expense Interest expense insurance expense bad debts expense depreciation expense rent income income tax expense $ 96,334 $ 42,350 $ 46,121 $ 8,308 $ 2,800 $ 220,000 $ 110,000 $ 290,000 Date Account Debit Credit 31-Dec depreciation expense $ 13,915 accumulated depreciation building $ 13,915 reprezin expenser bunting 31-Dec depreciation expense $ 56,324 accumulated depreciation Equipment $ 56.324 we donian areas or prevent 31-Dec depreciation expense $ accumulated depreciation Equipment $ 7,143 Wood'den ayense brennun/ae'on77 31-Deo supplies expense $ 1,150 supples $ 1,150 con supplies awwisse 31-Dec bad debts expense $ 899 allowance for bad debts 899 wriyelu antee for Peter ITIMARST 31-Dec interest expense $ 6,808 interest payable $ 6,808 conueinast on kak and norttien bankbans 31-Deo interest expense $ 1,500 interest payable $ 1,500 come inerest in bank banky W Dn/sed'o 77 31-Deo insurance expense $ 3,075 prepaid insurance $ 3,075 seconda pregadisware 31-Deo unearned rent $ $ 2,000 rent income $ 2,000 $ 95,206 $ 130,774 $ 12,000 $ 42,350 $ 46,121 $ 8,308 $ 2,800 $ 220,000 $ 319,579 $ 2.000 $ 132,774 $ 46,121 $ 86,653 $ 50,000 $ 25.000 $ 95,937 $ 574,750 D Statement of retained Earnings $ $ $ $ $ 110,000 $ (12,000) $ 315,000 $ 50,000 $ 182,590 $ 645,590 $ 965, 169 $ 46,121 2,610 10,000 336.160 500 1,150 12,200 3,075 899 77.382 Retained Earning Add net income Total Less Dividends Retained Earning $ $ 95,937 $ 86,653 $ 182,590 $ 26,800 $ 155,790 46,121 $ $ $ $ $ 31-Dec income tax expense income tax payable to record income tax expense O $ 2,000 $ 46,121 335 totals $ 1583 358 $ 1583 358 336 337 338 39 + 10 tg1083 x 547px 100% Sheet1 # . BSG is a Corporation that sells 2 styles of Sneakers (Running and Aerobic) The company uses the perpetual FIFO method in accounting for its inventory. BSG makes its adjustments at the end of each year All sales and inventory are purchased on account Be sure to round all numbers to the nearest dollar (Do Not Use Cents). The company had the following Post-Closing Trial Balance at 12/31/2022 Credit Debit 56,254 41,475 1,244 92,000 400 50 75,000 200,000 4,700 Account Name Cash Accounts Receivable Allowance for Bad Debt Inventory Supplies on Hand Prepaid Insurance Land Building A/D- Building Equipment A/D- Equipment Accounts Payable Income Tax Payble Interest Payable Unearned Rent Dividend Payable Notes Payable Common Stock APIC - Common Stock Retained Earnings 230,000 32,867 23,200 23,023 6,808 600 10,000 170,000 100,000 200,000 122,737 . BSG uses, the 200% double declining balance, Half Year, method to depreciate all 5, 7 & 10-year property BSG uses, the SL, mid-month basis to depreciate all real property Income tax rate is 35% The $230,000 of equipment has an expected life of 7 years and no salvage value The $200,000 building has an expected life of 39 years and no salvage value Inventory at 1/1/23 consists of: o Running Sneakers - 500 units at $120 each o Aerobic Sneakers - 400 units at $80 each Notes Payable at December 31, 2022 consisted of: o Foley Bank - 50,000, 7% interest rate. Interest is paid on Feb 1st of each year, principal to be repaid on 2/1/2026 Based on the following industry standards, comment on the profitability, solvency and liquidity of the company. o Gross Profit Margin 40.00% o Net Profit Margin 15.20% o Earnings per Share .80 Return on Comm Stockholder's equity 17.00% Return on Assets 11.00% Debt to assets ratio .50 Current ratio 1.50 o Inventory Turnover 4.00 Days in Inventory 91.25 0 Average receivable turnover 15.00 o Average collection period 24.33 0 o O 0 NOTE: It is up to you to use the skills you learned in Spreadsheets to complete a report using Excel. Please be sure all cells are referenced and using formulas where applicable. Getting or using a template from another source is considered plagiarism and will result in automatically failing this assignment. Date 7/1 7/1 7/15 8/2 8/10 9/10 Transaction Made interest payment on equipment note to Northern Bank Purchased $50,000 of equipment using a bank loan at 6% interest to be paid in 2 years. Interest is due on June 30 of each year. The equipment has a life of 7 years and a 5,000- salvage value. Sold Inventory on account (sold 275 Running Sneakers for $200 and 315 Aerobic Sneakers for $150) terms 2/10, net 30 Purchased $300 of supplies for cash Received 7 of payment from the 7/15 transaction Purchased inventory on account - 400 Running Sneakers for $124 each and 300 Aerobic for $85 each Made a payment of $100,000 towards our accounts payable balance, Purchased $350 of supplies for cash Received $4,200 from a tenant for 6 months' rent (11/1/2023 to 4/30/2024) Paid a cash dividend of $.20 per share on outstanding shares and paid dividends to preferred shareholders Sold Inventory on account (sold 600 Running Sneakers for $200 and 510 Aerobic Sneakers for $150) terms 2/10, net 30 Received payments totaling $250,000 from customers for past due invoices 10/1 10/15 11/1 11/17 12/1 12/31 . 0 . . . . Other Information: At year end $150 worth of supplies are on hand The company uses the % of Receivables method in estimating bad debts; 3% of the ending receivables balance is deemed to be uncollectible Required: Prepare all journal entries to record the information for 2023. Prepare all adjusting journal entries as necessary Prepare an adjusted Trial Balance as of December 31, 2023 Prepare an income statement, statement of retained earnings and a balance sheet as of December 31, 2023 Prepare a cash flow statement, using the indirect method, for the year ended December 31, 2023 Close all accounts as necessary and prepare a post-closing Trial Balance Please include a sheet on how you calculated your adjusting Journal entries and inventory Prepare a horizontal analysis of the balance sheet o When preparing this analysis only analyze the sum of the main categories (total current assets, total long-term assets, total assets, total current liabilities, total long-term liabilities, total liabilities, total equity, total liabilities and equity) Prepare a vertical analysis for 2023 income statement When preparing this analysis use the following categories: Net Sales, Cost of Goods Sold, Gross Profit, Operating Expenses, Income from Operations, Other Expenses and losses, Income before income taxes, Income Tax Expense and Net Income Compute the following ratios for the company (use 365 days per year and be sure to show all calculations) o Gross Profit Margin o Debt to assets ratio o Net Profit Margin Current ratio o Earnings per Share Inventory Turnover Return on Comm Stockholder's Days in Inventory equity 0 Average receivable turnover Return on Assets Average collection period . 0 0 0 o 0 Northern bank - 120,000, 6% interest rate, Interest is paid on June 30th of each year, principal to be repaid on June 30, 2024 Stock 0 Common Stock has a $1 par value, 500,000 shares authorized, 100,000 shares issued and outstanding at 12/31/2022. Preferred Stock has a $10 par value, 10%, 100,000 shares authorized, there were no shares issued or outstanding at 12/31/2022. o The following transactions and events occurred in 2023. Date Transaction 1/1 Issued 10,000 share of $1 par common stock to investors at $10 per share 1/1 Paid monthly rent on computer equipment, $500 1/1 Issued 5,000 share of $10 par, 10% preferred stock to investors at $15 per share 1/1 The estimated useful life and salvage value for the building that was purchased in 2022 was changed. It is now estimated that the building has a remaining life (as of 1/1/2023) of 20 years and a salvage value of $5,000. 1/1 Purchased a building and land for $200,000. The building has a 25-year expected useful life and a $10,000 expected salvage value. The land is valued at $80,000. 1/10 Purchased $250 of supplies for cash 1/15 Purchased inventory on account - 500 Running Sneakers for $121 each and 600 Aerobic for $82 each 1/15 Made a payment of $20,000 to pay off several Accounts Payable accounts 1/15 Paid the cash dividend declared in November 2022 1/31 Paid $3,300 for a 1-year insurance policy (effective 2/1/2023-1/31/2024) 2/1 BSG repurchased 1,000 shares of its own common stock to be held as treasury stock. The price paid was $12 per share 2/1 Paid the interest on the loan from Foley Bank (Remember some of the interest was accrued at 12/31/2022- your entry should include three accounts) 2/2 Paid for inventory purchased on 1/15 2/20 Sold Inventory on account (sold 100 Running Sneakers for $200 and 120 Aerobic Sneakers for $150) terms 2/10, net 30 3/2 Received notice that a customer from 2022 declared bankruptcy and will not be able to pay the remaining balance owed on their bill, $1,000 3/5 Sold Inventory on account (sold 200 Running Sneakers for $200 and 70 Aerobic Sneakers for $150) terms 2/10, net 30 3/10 Received payment for the 2/20 transaction 3/12 Received payment for merchandise sold on 3/5 3/15 Paid income taxes owed from the 2022 fiscal year. 4/2 Sold Inventory on account (sold 250 Running Sneakers for $200 and 200 Aerobic Sneakers for $150) terms 2/10, net 30 4/10 Received payment for merchandise sold on 4/2 4/30 Purchased inventory on account - 700 Running Sneakers for $123 each and 500 Aerobic for $84 each 5/1 Sold Inventory on account (sold 350 Running Sneakers for $200 and 250 Aerobic Sneakers for $150) terms 2/10, net 30 5/20 Customer from the 5/1 transaction returned inventory (50 Running Sneakers) all inventory was still in good working order 5/20 Customer paid their remaining balance from the 5/1 transaction 6/10 Paid for half of the inventory purchase from 4/30 adjusted trail balance adjusting entries Multi step income statement credit credit $ 574,750 Debit $ 218,996 $ 38,100 $ 1,143 sales 8 Less: sales Dissount Sales Return Net sales Cost of Good Sold Gross Profit $ 218,996 $ 38,100 $ (1,143 $ 68,740 $ 150 $ 275 $ 325, 118 $ $ 2,610 10,000 $ 12,610 $ 562,140 $ 336,160 $ 225.980 $ 68,740 $ 150 $ 275 $ 155,000 $ 320,000 7.143 $ 18,615 $ 280,000 298 299 300 Balance Sheet 301 Current Assets 302 Cash 303 Accounts Receivable 304 Less: allowance for bad debts 305 Inventory B06 supplies 307 prepaid Insurance 308 Total Current Assets 309 Non Curreent assets 310 Land 311 Building 312 Less accumulated Depreciation Bulding 313 Equipent 314 Less accumulated Depreciation Equipment 315 Total non current asset 816 Total assests 317 Current Liabilities 818 accounts Pyable 319 income tax payvabe 320 Interest payable 21 unearned rent B22 notes payable 323 total 324 Equity 325 Common Stock 326 Less treasury stock 327 Capital paid 28 Preferred Stocks B29 Retained earning 330 total 31 Total liabilities and owners equilty 332 333 334 $ 155,000 $ 320,000 $ (18,615) $ 280,000 $ (96,334) $ 640,051 $ 965, 169 $ $ $ $ $ $ Operating Expenses Rent Expenses 7 Supplies Expense Interest Expense Insurance Expense Bad Debts Expense Deprating Expense Total Operating Expenses 3 Operating Income Other Income: Rent Income Net income before tax income tax expense net income after tax 500 1.150 12,200 3,075 899 77,382 Account Cash accounts recevable allowance for bad debits inventory supplies on hand prepaid insurance land building A/D Building Equipment AlD Equipmet accounts payable income tax payable interest payable unearned rent notes payable common stock APIC common stocks Treasuty stooks common preferred stock Apic preferred stocks Retained Earings sales sales discount sales retuns cost of goods sold rent expense supplies expense Interest expense insurance expense bad debts expense depreciation expense rent income income tax expense $ 96,334 $ 42,350 $ 46,121 $ 8,308 $ 2,800 $ 220,000 $ 110,000 $ 290,000 Date Account Debit Credit 31-Dec depreciation expense $ 13,915 accumulated depreciation building $ 13,915 reprezin expenser bunting 31-Dec depreciation expense $ 56,324 accumulated depreciation Equipment $ 56.324 we donian areas or prevent 31-Dec depreciation expense $ accumulated depreciation Equipment $ 7,143 Wood'den ayense brennun/ae'on77 31-Deo supplies expense $ 1,150 supples $ 1,150 con supplies awwisse 31-Dec bad debts expense $ 899 allowance for bad debts 899 wriyelu antee for Peter ITIMARST 31-Dec interest expense $ 6,808 interest payable $ 6,808 conueinast on kak and norttien bankbans 31-Deo interest expense $ 1,500 interest payable $ 1,500 come inerest in bank banky W Dn/sed'o 77 31-Deo insurance expense $ 3,075 prepaid insurance $ 3,075 seconda pregadisware 31-Deo unearned rent $ $ 2,000 rent income $ 2,000 $ 95,206 $ 130,774 $ 12,000 $ 42,350 $ 46,121 $ 8,308 $ 2,800 $ 220,000 $ 319,579 $ 2.000 $ 132,774 $ 46,121 $ 86,653 $ 50,000 $ 25.000 $ 95,937 $ 574,750 D Statement of retained Earnings $ $ $ $ $ 110,000 $ (12,000) $ 315,000 $ 50,000 $ 182,590 $ 645,590 $ 965, 169 $ 46,121 2,610 10,000 336.160 500 1,150 12,200 3,075 899 77.382 Retained Earning Add net income Total Less Dividends Retained Earning $ $ 95,937 $ 86,653 $ 182,590 $ 26,800 $ 155,790 46,121 $ $ $ $ $ 31-Dec income tax expense income tax payable to record income tax expense O $ 2,000 $ 46,121 335 totals $ 1583 358 $ 1583 358 336 337 338 39 + 10 tg1083 x 547px 100% Sheet1 # . BSG is a Corporation that sells 2 styles of Sneakers (Running and Aerobic) The company uses the perpetual FIFO method in accounting for its inventory. BSG makes its adjustments at the end of each year All sales and inventory are purchased on account Be sure to round all numbers to the nearest dollar (Do Not Use Cents). The company had the following Post-Closing Trial Balance at 12/31/2022 Credit Debit 56,254 41,475 1,244 92,000 400 50 75,000 200,000 4,700 Account Name Cash Accounts Receivable Allowance for Bad Debt Inventory Supplies on Hand Prepaid Insurance Land Building A/D- Building Equipment A/D- Equipment Accounts Payable Income Tax Payble Interest Payable Unearned Rent Dividend Payable Notes Payable Common Stock APIC - Common Stock Retained Earnings 230,000 32,867 23,200 23,023 6,808 600 10,000 170,000 100,000 200,000 122,737 . BSG uses, the 200% double declining balance, Half Year, method to depreciate all 5, 7 & 10-year property BSG uses, the SL, mid-month basis to depreciate all real property Income tax rate is 35% The $230,000 of equipment has an expected life of 7 years and no salvage value The $200,000 building has an expected life of 39 years and no salvage value Inventory at 1/1/23 consists of: o Running Sneakers - 500 units at $120 each o Aerobic Sneakers - 400 units at $80 each Notes Payable at December 31, 2022 consisted of: o Foley Bank - 50,000, 7% interest rate. Interest is paid on Feb 1st of each year, principal to be repaid on 2/1/2026 Based on the following industry standards, comment on the profitability, solvency and liquidity of the company. o Gross Profit Margin 40.00% o Net Profit Margin 15.20% o Earnings per Share .80 Return on Comm Stockholder's equity 17.00% Return on Assets 11.00% Debt to assets ratio .50 Current ratio 1.50 o Inventory Turnover 4.00 Days in Inventory 91.25 0 Average receivable turnover 15.00 o Average collection period 24.33 0 o O 0 NOTE: It is up to you to use the skills you learned in Spreadsheets to complete a report using Excel. Please be sure all cells are referenced and using formulas where applicable. Getting or using a template from another source is considered plagiarism and will result in automatically failing this assignment. Date 7/1 7/1 7/15 8/2 8/10 9/10 Transaction Made interest payment on equipment note to Northern Bank Purchased $50,000 of equipment using a bank loan at 6% interest to be paid in 2 years. Interest is due on June 30 of each year. The equipment has a life of 7 years and a 5,000- salvage value. Sold Inventory on account (sold 275 Running Sneakers for $200 and 315 Aerobic Sneakers for $150) terms 2/10, net 30 Purchased $300 of supplies for cash Received 7 of payment from the 7/15 transaction Purchased inventory on account - 400 Running Sneakers for $124 each and 300 Aerobic for $85 each Made a payment of $100,000 towards our accounts payable balance, Purchased $350 of supplies for cash Received $4,200 from a tenant for 6 months' rent (11/1/2023 to 4/30/2024) Paid a cash dividend of $.20 per share on outstanding shares and paid dividends to preferred shareholders Sold Inventory on account (sold 600 Running Sneakers for $200 and 510 Aerobic Sneakers for $150) terms 2/10, net 30 Received payments totaling $250,000 from customers for past due invoices 10/1 10/15 11/1 11/17 12/1 12/31 . 0 . . . . Other Information: At year end $150 worth of supplies are on hand The company uses the % of Receivables method in estimating bad debts; 3% of the ending receivables balance is deemed to be uncollectible Required: Prepare all journal entries to record the information for 2023. Prepare all adjusting journal entries as necessary Prepare an adjusted Trial Balance as of December 31, 2023 Prepare an income statement, statement of retained earnings and a balance sheet as of December 31, 2023 Prepare a cash flow statement, using the indirect method, for the year ended December 31, 2023 Close all accounts as necessary and prepare a post-closing Trial Balance Please include a sheet on how you calculated your adjusting Journal entries and inventory Prepare a horizontal analysis of the balance sheet o When preparing this analysis only analyze the sum of the main categories (total current assets, total long-term assets, total assets, total current liabilities, total long-term liabilities, total liabilities, total equity, total liabilities and equity) Prepare a vertical analysis for 2023 income statement When preparing this analysis use the following categories: Net Sales, Cost of Goods Sold, Gross Profit, Operating Expenses, Income from Operations, Other Expenses and losses, Income before income taxes, Income Tax Expense and Net Income Compute the following ratios for the company (use 365 days per year and be sure to show all calculations) o Gross Profit Margin o Debt to assets ratio o Net Profit Margin Current ratio o Earnings per Share Inventory Turnover Return on Comm Stockholder's Days in Inventory equity 0 Average receivable turnover Return on Assets Average collection period . 0 0 0 o 0 Northern bank - 120,000, 6% interest rate, Interest is paid on June 30th of each year, principal to be repaid on June 30, 2024 Stock 0 Common Stock has a $1 par value, 500,000 shares authorized, 100,000 shares issued and outstanding at 12/31/2022. Preferred Stock has a $10 par value, 10%, 100,000 shares authorized, there were no shares issued or outstanding at 12/31/2022. o The following transactions and events occurred in 2023. Date Transaction 1/1 Issued 10,000 share of $1 par common stock to investors at $10 per share 1/1 Paid monthly rent on computer equipment, $500 1/1 Issued 5,000 share of $10 par, 10% preferred stock to investors at $15 per share 1/1 The estimated useful life and salvage value for the building that was purchased in 2022 was changed. It is now estimated that the building has a remaining life (as of 1/1/2023) of 20 years and a salvage value of $5,000. 1/1 Purchased a building and land for $200,000. The building has a 25-year expected useful life and a $10,000 expected salvage value. The land is valued at $80,000. 1/10 Purchased $250 of supplies for cash 1/15 Purchased inventory on account - 500 Running Sneakers for $121 each and 600 Aerobic for $82 each 1/15 Made a payment of $20,000 to pay off several Accounts Payable accounts 1/15 Paid the cash dividend declared in November 2022 1/31 Paid $3,300 for a 1-year insurance policy (effective 2/1/2023-1/31/2024) 2/1 BSG repurchased 1,000 shares of its own common stock to be held as treasury stock. The price paid was $12 per share 2/1 Paid the interest on the loan from Foley Bank (Remember some of the interest was accrued at 12/31/2022- your entry should include three accounts) 2/2 Paid for inventory purchased on 1/15 2/20 Sold Inventory on account (sold 100 Running Sneakers for $200 and 120 Aerobic Sneakers for $150) terms 2/10, net 30 3/2 Received notice that a customer from 2022 declared bankruptcy and will not be able to pay the remaining balance owed on their bill, $1,000 3/5 Sold Inventory on account (sold 200 Running Sneakers for $200 and 70 Aerobic Sneakers for $150) terms 2/10, net 30 3/10 Received payment for the 2/20 transaction 3/12 Received payment for merchandise sold on 3/5 3/15 Paid income taxes owed from the 2022 fiscal year. 4/2 Sold Inventory on account (sold 250 Running Sneakers for $200 and 200 Aerobic Sneakers for $150) terms 2/10, net 30 4/10 Received payment for merchandise sold on 4/2 4/30 Purchased inventory on account - 700 Running Sneakers for $123 each and 500 Aerobic for $84 each 5/1 Sold Inventory on account (sold 350 Running Sneakers for $200 and 250 Aerobic Sneakers for $150) terms 2/10, net 30 5/20 Customer from the 5/1 transaction returned inventory (50 Running Sneakers) all inventory was still in good working order 5/20 Customer paid their remaining balance from the 5/1 transaction 6/10 Paid for half of the inventory purchase from 4/30
