I have to do a final analysis for an accounting simulation project. These are the questions that I need to answer. I provided the Trial Balance and the Income statement( profit & loss). Some of them I tried to do I just need to verify that they are correct. I am having a hard time reading the income statement on this website. Thank you for your help
These are the questions:
1 What is net income for March 1 - March 31, 2007? -$2,718.66 2 What is net income year-to-date (January 1 - March 31, 2007)? $5,588.28 3 What is the cash balance as of March 31, 2007? $9,456.66 4 What is the accounts payable balance as of March 31, 2007? $2,690.32 5 Numerically express the accounting equation as of March 31, 2007. 51,978.44(assets) = $38,676.96(liabilities) + $10,000(common stock) + $5,588.28(retained earnings) 6 Hypothetically, if the company used the allowance method for accounting for bad debts, and determined that it needed to set-up an allowance of 1/2% of total income for the quarter, what would be the net realizable value of accounts receivable? 7 What is the return on sales ratio for the quarter ending March 31, 2007? (Use "Total Income" as your sales figure.) $5,588.28 / $43,621.88=0.13 13% 8 What is the gross margin percentage for the quarter ending March 31, 2007? (Use "Total Income" as your sales figure.) ($43,621.88Revenue - $19556.15 COGS)/ $43,621.88 = 0.55 55% 9 What is the current ratio as of March 31, 2007? How has the current ratio changed since February 28, 2007? What does this mean? Trial Balance Champion Wave, Inc As of Mar 31, 2007 ACCOUNTS DEBIT CREDIT 286.00 0.00 0.00 1,041.20 0.00 672.00 Assets Accounts Receivable - Active Accumulated Depreciation - Equipment Accumulated Depreciation - F&F Cash on Hand Certificate of Deposit Equipment Furnitures and Fixtures Interest Receivable 9,456.66 0.00 8,000.00 0.00 4,824.00 0.00 4,532.00 0.00 80.00 0.00 14,771.60 0.00 Merchandise Inventory Petty Cash 100.00 0.00 1,920.00 0.00 2,070.00 0.00 Prepaid Advertising Prepaid Insurance Prepaid Rent Store Supplies 5,400.00 0.00 538.18 0.00 Total Assets 51,978.44 1,713.20 Liabilities Accounts Payable - used 0.00 2,690.32 Interest Payable 0.00 637.50 0.00 30,000.00 Notes Payable Sales Tax Payable 0.00 2,991.64 Trial Balance - Champion Wave Inc As of Mar 31, 2007 Created on Nov 14, 2021 Page 1/3 Liabilities Unearned Revenue 0.00 1,957.50 Wages Payable 0.00 400.00 Total Liabilities 0.00 38,676.96 Equity Common Stock Dividends 0.00 10,000.00 4,000.00 0.00 Total Equity 4,000.00 10,000.00 Income 0.00 107.66 Interest Income Lesson Revenue 0.00 3,542.50 Repair Revenue 0.00 1,378.50 Sales/ Revenue 0.00 38,593.22 Total Income 0.00 43,621.88 Expenses 375.00 0.00 48.00 0.00 8.60 0.00 Advertising Expense Bank Service Charges Cash Over / Short Cost of Goods Sold Credit Card Processing Expense Delivery Expense 19,556.15 0.00 800.12 0.00 276.00 0.00 Depreciation Expense - Equipment 1,064.00 0.00 Depreciation Expense - F&F 672.00 0.00 Trial Balance - Champion Wave, Inc As of Mar 31, 2007 Created on Nov 14, 2021 Prige Expenses Insurance Expense 480.00 0.00 637.50 0.00 163.20 0.00 1,284.00 0.00 5,400.00 0.00 Interest Expense Loss of Disposal of Asset Professional Fees Rent Expense Repairs & Maintenance Salaries & Wages Expense Store Supplies Expense Telephone Expense Utilities Expense 749.19 0.00 4,800.00 0.00 1,080.42 0.00 291.88 0.00 347.54 0.00 Total Expenses 38,033.60 0.00 Total for all accounts 94,012.04 94,012.04 Profit and Loss Champion Wave, Inc Date Range: Jan 01, 2007 to Mar 31, 2007 ACCOUNTS Jan 01, 2007 to Mar 31, 2007 Income Interest Income $107.66 Lesson Revenue $3,542.50 Repair Revenue $1,378.50 $38,593.22 Sales/ Revenue Total Income $43,621.88 Cost of Goods Sold Cost of Goods Sold $19,556.15 Total Cost of Goods Sold $19,556.15 Gross Profit As a percentage of Total Income $24,065.73 55.17% Operating Expenses Advertising Expense $375.00 Bank Service Charges $48.00 Cash Over / Short $8.60 Credit Card Processing Expense $800.12 Delivery Expense $276.00 Depreciation Expense - Equipment $1,064.00 Depreciation Expense - F&F $672.00 $480.00 Operating Expenses Insurance Expense Interest Expense Loss of Disposal of Asset $637.50 $163.20 $1,284.00 Professional Fees Rent Expense Repairs & Maintenance $5,400.00 $749.19 Salaries & Wages Expense $4,800.00 Store Supplies Expense $1,080.42 Telephone Expense $291.88 Utilities Expense $347.54 Total Operating Expenses $18,477.45 Net Profit As a percentage of Total Income $5,588.28 12.81% 1 What is net income for March 1 - March 31, 2007? -$2,718.66 2 What is net income year-to-date (January 1 - March 31, 2007)? $5,588.28 3 What is the cash balance as of March 31, 2007? $9,456.66 4 What is the accounts payable balance as of March 31, 2007? $2,690.32 5 Numerically express the accounting equation as of March 31, 2007. 51,978.44(assets) = $38,676.96(liabilities) + $10,000(common stock) + $5,588.28(retained earnings) 6 Hypothetically, if the company used the allowance method for accounting for bad debts, and determined that it needed to set-up an allowance of 1/2% of total income for the quarter, what would be the net realizable value of accounts receivable? 7 What is the return on sales ratio for the quarter ending March 31, 2007? (Use "Total Income" as your sales figure.) $5,588.28 / $43,621.88=0.13 13% 8 What is the gross margin percentage for the quarter ending March 31, 2007? (Use "Total Income" as your sales figure.) ($43,621.88Revenue - $19556.15 COGS)/ $43,621.88 = 0.55 55% 9 What is the current ratio as of March 31, 2007? How has the current ratio changed since February 28, 2007? What does this mean? Trial Balance Champion Wave, Inc As of Mar 31, 2007 ACCOUNTS DEBIT CREDIT 286.00 0.00 0.00 1,041.20 0.00 672.00 Assets Accounts Receivable - Active Accumulated Depreciation - Equipment Accumulated Depreciation - F&F Cash on Hand Certificate of Deposit Equipment Furnitures and Fixtures Interest Receivable 9,456.66 0.00 8,000.00 0.00 4,824.00 0.00 4,532.00 0.00 80.00 0.00 14,771.60 0.00 Merchandise Inventory Petty Cash 100.00 0.00 1,920.00 0.00 2,070.00 0.00 Prepaid Advertising Prepaid Insurance Prepaid Rent Store Supplies 5,400.00 0.00 538.18 0.00 Total Assets 51,978.44 1,713.20 Liabilities Accounts Payable - used 0.00 2,690.32 Interest Payable 0.00 637.50 0.00 30,000.00 Notes Payable Sales Tax Payable 0.00 2,991.64 Trial Balance - Champion Wave Inc As of Mar 31, 2007 Created on Nov 14, 2021 Page 1/3 Liabilities Unearned Revenue 0.00 1,957.50 Wages Payable 0.00 400.00 Total Liabilities 0.00 38,676.96 Equity Common Stock Dividends 0.00 10,000.00 4,000.00 0.00 Total Equity 4,000.00 10,000.00 Income 0.00 107.66 Interest Income Lesson Revenue 0.00 3,542.50 Repair Revenue 0.00 1,378.50 Sales/ Revenue 0.00 38,593.22 Total Income 0.00 43,621.88 Expenses 375.00 0.00 48.00 0.00 8.60 0.00 Advertising Expense Bank Service Charges Cash Over / Short Cost of Goods Sold Credit Card Processing Expense Delivery Expense 19,556.15 0.00 800.12 0.00 276.00 0.00 Depreciation Expense - Equipment 1,064.00 0.00 Depreciation Expense - F&F 672.00 0.00 Trial Balance - Champion Wave, Inc As of Mar 31, 2007 Created on Nov 14, 2021 Prige Expenses Insurance Expense 480.00 0.00 637.50 0.00 163.20 0.00 1,284.00 0.00 5,400.00 0.00 Interest Expense Loss of Disposal of Asset Professional Fees Rent Expense Repairs & Maintenance Salaries & Wages Expense Store Supplies Expense Telephone Expense Utilities Expense 749.19 0.00 4,800.00 0.00 1,080.42 0.00 291.88 0.00 347.54 0.00 Total Expenses 38,033.60 0.00 Total for all accounts 94,012.04 94,012.04 Profit and Loss Champion Wave, Inc Date Range: Jan 01, 2007 to Mar 31, 2007 ACCOUNTS Jan 01, 2007 to Mar 31, 2007 Income Interest Income $107.66 Lesson Revenue $3,542.50 Repair Revenue $1,378.50 $38,593.22 Sales/ Revenue Total Income $43,621.88 Cost of Goods Sold Cost of Goods Sold $19,556.15 Total Cost of Goods Sold $19,556.15 Gross Profit As a percentage of Total Income $24,065.73 55.17% Operating Expenses Advertising Expense $375.00 Bank Service Charges $48.00 Cash Over / Short $8.60 Credit Card Processing Expense $800.12 Delivery Expense $276.00 Depreciation Expense - Equipment $1,064.00 Depreciation Expense - F&F $672.00 $480.00 Operating Expenses Insurance Expense Interest Expense Loss of Disposal of Asset $637.50 $163.20 $1,284.00 Professional Fees Rent Expense Repairs & Maintenance $5,400.00 $749.19 Salaries & Wages Expense $4,800.00 Store Supplies Expense $1,080.42 Telephone Expense $291.88 Utilities Expense $347.54 Total Operating Expenses $18,477.45 Net Profit As a percentage of Total Income $5,588.28 12.81%
