Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if I could get some help with the statement of cash flows thank you! The Business This practice set is designed in two parts. The

if I could get some help with the statement of cash flows thank you!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Business This practice set is designed in two parts. The first part provides a review of the financial statements of Ellie's Earphones, Inc. selling earphone inventory. Ellie's Earphones, Inc., whose primary operation is the sale of earphones to on-line customers and retailers in the market. Each student will prepare a financial analysis and Statement of Cash Flow for the company. In the second part, Ellie's Earphones, Inc., decides to start producing the earphones and selling them directly on the Internet and to customers. All cases of academic dishonesty will be reported to the Office of Student Life. Part One Instructions The financial information for the past two years (2021 and 2022) is provided. Ellie's Earphones collection policy is 30 days and the benchmark for the inventory is 35 days. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Working Capital 2021, 2022 b. Current Ratio - 2021, 2022 C. Quick Ratio-2021, 2022 d. Accounts Receivable Turnover 2022 e. Number of Days Sales in Receivables - 2022 f. Inventory Turnover-2022 g. Number of Days Sales in Inventory 2022 h. Ratio of Liabilities to Stockholders' Equity - 2022 i. Return on Total Assets - 2022 j. Return on Stockholders' Equity - 2022 k. Earnings Per Share - 2021, 2022 c. When the answer is in units enter the number as is (See example below) i. 280 d. When the answer is for ratios (i.e. Days) and has a decimal take the decimal out to one decimal place. Round to one decimal. (See example below) i. 280.9 days e. When ratios are in times take out to one decimal place (See example below) i. 280.9 times f. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add .00 (See example below) i. $280.00 or $280.30 Oease follow all instructions. If the answers are formatted incorrectly the answer will be counted vrong. Comparative Statemen nfo

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

5-8 What are the advantages and disadvantages of the BYOD movement?

Answered: 1 week ago