Income Statement for year 2011 230,000 2010 200,000 Net Sales Revenue (all Credit Sales) Cost of Goods Sold 165,000 150,000 Gross Profit 65.000 50,000 Salaries & admin Expense Depreciation Expense Income before Tax 9,500 14.500 41.000 10,000 14,000 26,000 Tax expense 11,000 5,000 Net Income Shares Outstanding Stock Price 30,000 150.000 15 21,000 150,000 12 Balance sheet @ year end 2011 2010 Current Assets Cash Accounts Receivables, net (2009 ending 20,000) Inventory (2009 ending 25,000) Total Current Assets 33.000 33.000 27,000 93,000 20,000 14,000 20,000 54,000 Property Plant & Equipment Accumulated depreciation 60,000 -29.000 78,000 -24,000 Total Assets 124,000 108,000 Accounts Payable Income Tax Payable Total Current Liabilities Bonds Payable Total Liabilities 29.000 7,000 36.000 27.000 63,000 15,000 8,000 23,000 33,000 56,000 Common Stock Retained Earnings Total Liabilities and Shareholders Equity 18,000 43,000 124.000 14,000 38,000 108,000 Find: 2011 2010 1 Current Ratio 2 Price/Earnings Ratio 3 Accounts Receivable Turnover 4 Inventory Tumover 5 Earning per share (Ignore Dividends) 6 Quick ratio (Acid Test) Find: 2011 2010 1 Current Ratio 2 Price/Earnings Ratio 3 Accounts Receivable Turnover 4 Inventory Turnover 5 Earning per share (Ignore Dividends) 6 Quick ratio (Acid Test) 7 Debt Ratio 8 Do a Horizontal Analysis of the Balance sheet above - difference and % Do it right next to the Balance Sheet 9 Do a Vertical analysis of the Income Statement above Do it right next to the income statement 2011 and 2010 ADDITIONAL INFORMATION Dividends declared and paid 25000 Equipment was sold for 8,500, it was bought for 18,000 and had book value of 8,500 when sold All sales are credit sales 10 In the space below, create the Cash Flow Statement for 2011 You are the accountant for Security Software. The month just ended 1/31/2002. Create journal entries for the following: 11. During the month software sales were 50,000, all on account, and sales tax is 8.5% in addition to that amount. Describe the above with a journal entry: Account Debit Credit You are the accountant for Security Software. The month just ended 1/31/2002. Create journal entries for the following: 11. During the month software sales were 50,000, all on account, and sales tax is 8.5% in addition to that amount. Describe the above with a journal entry: Account Debit Credit 12. On Feb 15th you send this sales tax from number 11 to the state. Make the Journal Account Debit Credit 13. Customers also were invoiced $12,000 for 1 year maintenance contracts. Describe the transaction. (there is no sales tax on this) Account Debit Credit 14. The month's payroll, paid on 1/31 needs to be recorded. Total payroll is $20,000 4,000 is withheld for federal taxes, 1,000 for state taxes, and 7.65% is withheld for FICA tax. Account Debit Credit 15. On 10/31/2011 The company takes out a $120,000 bank loan and signs a 4 year note at 8% interest paid every 3 months. Make Journals for the following a. 10/31/2011 - record the loan b. 12/31/2011 - year end needs to have everything accurate including interest liabilities c 1/31/2012 - it has been 3 months Date Account Debit Credit
