Question
INSTRUCTIONS: Analyze the given Statement of Financial Position of Nike Inc. and satisfy the requirements given below. Prepare an updated Statement of Financial Performance, Statement
INSTRUCTIONS: Analyze the given Statement of Financial Position of Nike Inc. and satisfy the requirements given below. Prepare an updated Statement of Financial Performance, Statement of Cash Flow and Statement of Financial Position for June 30, 2018 based from the different accounts and transactions of Nike Inc. during the aforementioned period. Round off your final answer to the nearest whole number. Not following instructions shall be given no credit.
WAY OF ANSWERING:
NO COMMAS, NO DECIMAL POINTS, NO DOLLAR SIGNS
ANSWER ONLY USING NUMBERS. USE () IF THE ANSWER IS NEGATIVE
Nike Inc.
Statement of Financial Position
As of June 30, 2017
ASSETS
Current Assets:
Cash in Bank $ 80,000.00
Inventories 20,000.00
Total Current Assets $ 100,000.00
Non Current Assets
Land 20,000.00
Machinery and Equipment 30,000.00
Buildings 20,000.00
Total Non Current Assets 70,000.00
Total Assets $ 170,000.00
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 45,000.00
Bank Loans 10,000.00
Total Current Liabilities 55,000.00
Non Current Liabilities
Notes Payable 15,000.00
Total Non Current Liabilities 15,000.00
Total Liabilities $ 70,000.00
Equity
Retained Earnings 80,000.00
Ordinary Share 20,000.00
Total Equity 100,000.00
Total Liabilities and Equity $ 170,000.00
The following are the expenses and income incurred by Nike Inc. from July 1, 2017 to June 30, 2018
- Sales Revenue $100.00 per piece Quantity Sold 2,000.00
- Cost of Sales 50% of Sales Revenue
- Advertisement Expense (Tarpaulins) 200.00
- Depreciation Expense (Machinery and Equipment) 3,000.00
- Depreciation Expense (Buildings) 2,000.00
- Transportation Expense 1,000.00
- Salaries Expense Ave. 5 employees per day x $20 per day x 360 days
- Other Expenses 500.00
- Rent Expense 900 per month
- Interest Expense 1,500.00
- Tax rate 20%
- All other accounts would remain the same.
Requirements:
Statement of Financial Performance for the year ended June 30, 2018
- What is the computed gross profit?
- How much is the total operating expenses before interest and taxes?
- What is the amount of tax that would be paid?
- What is the net income after interest and taxes?
Statement of Cash Flows for the year ended June 30, 2018
1. What is the beginning balance of your cash flow?
2. How much is the total inflow of cash from operations?
3. How much is the total cash outflow?
4. What is the ending balance of your statement of cash flow?
Statement of Financial Position as of June 30, 2018
1. What is the value of the total current assets?
2. How much was added / deducted in the non-current asset compared to the statement of financial position of the previous year?
3. What is the total adjusted retained earnings?
4. What is the computed total liabilities and equity?
INSTRUCTIONS: Analyze the given Statement of Financial Position of Nike Inc. and satisfy the requirements given below. Prepare an updated Statement of Financial Performance, Statement of Cash Flow and Statement of Financial Position for June 30, 2018 based from the different accounts and transactions of Nike Inc. during the aforementioned period. Round off your final answer to the nearest whole number. Not following instructions shall be given no credit.
WAY OF ANSWERING:
NO COMMAS, NO DECIMAL POINTS, NO DOLLAR SIGNS
ANSWER ONLY USING NUMBERS. USE () IF THE ANSWER IS NEGATIVE
Nike Inc.
Statement of Financial Position
As of June 30, 2017
ASSETS
Current Assets:
Cash in Bank $ 80,000.00
Inventories 20,000.00
Total Current Assets $ 100,000.00
Non Current Assets
Land 20,000.00
Machinery and Equipment 30,000.00
Buildings 20,000.00
Total Non Current Assets 70,000.00
Total Assets $ 170,000.00
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 45,000.00
Bank Loans 10,000.00
Total Current Liabilities 55,000.00
Non Current Liabilities
Notes Payable 15,000.00
Total Non Current Liabilities 15,000.00
Total Liabilities $ 70,000.00
Equity
Retained Earnings 80,000.00
Ordinary Share 20,000.00
Total Equity 100,000.00
Total Liabilities and Equity $ 170,000.00
The following are the expenses and income incurred by Nike Inc. from July 1, 2017 to June 30, 2018
- Sales Revenue $100.00 per piece Quantity Sold 2,000.00
- Cost of Sales 50% of Sales Revenue
- Advertisement Expense (Tarpaulins) 200.00
- Depreciation Expense (Machinery and Equipment) 3,000.00
- Depreciation Expense (Buildings) 2,000.00
- Transportation Expense 1,000.00
- Salaries Expense Ave. 5 employees per day x $20 per day x 360 days
- Other Expenses 500.00
- Rent Expense 900 per month
- Interest Expense 1,500.00
- Tax rate 20%
- All other accounts would remain the same.
Requirements:
Statement of Financial Performance for the year ended June 30, 2018
- What is the computed gross profit?
- How much is the total operating expenses before interest and taxes?
- What is the amount of tax that would be paid?
- What is the net income after interest and taxes?
Statement of Cash Flows for the year ended June 30, 2018
1. What is the beginning balance of your cash flow?
2. How much is the total inflow of cash from operations?
3. How much is the total cash outflow?
4. What is the ending balance of your statement of cash flow?
Statement of Financial Position as of June 30, 2018
1. What is the value of the total current assets?
2. How much was added / deducted in the non-current asset compared to the statement of financial position of the previous year?
3. What is the total adjusted retained earnings?
4. What is the computed total liabilities and equity?
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