Net Income.. Balance Sheet.. Ratio and Analysis..
The following accounts (in no particular order) are for Perfect Reb Corporation for the fiscal year ended December 31, 2017. (S/T = Short-Term; L/T = Long-Term) REQUIRED: A) Calculate Perfect Reb Corporation's net income or net loss for the 2017 fiscal year. It is HIGHLY RECOMMENDED that your work follow the format of a multiple step income statement. B) Using proper form, prepare Perfect Reb Corporation's balance sheet for 2017. C) Using the information provided, solve for the requested ratios. $52,000 Sales Discounts $5,000 Common Stock (13,000 shares outstanding) Accrued Expenses (Payables) 20,000 Income Tax Expense (25% of IBIT) ?????? Miscellaneous Operating Expenses 50,000 Cash Cash 142,000 Accounts Receivable 20,000 Interest Expense 4,000 Buildings 186,000 Marketable Securities 62,000 Retained Earnings ?????? Notes Payable (due in 5 years) 12,000 Wages Expense 60,000 Rent Expense 11,000 Inventory 40,000 Unearned Revenue 19,000 Accumulated Depreciation - Buildings 48,000 15,000 Allowance for Uncollectible Accounts Sales Accounts Payable 41,000 433,000 Gain on Sale of Equipment 62,000 Mortgage Payable ($12,000 S/T) 144,000 Land 50,000 Sales Returns & Allowances 12,000 Bad Debt Expense 2,000 Depreciation Expense 11,000 L/T Investments 7,000 Cost of Goods Sold 109,000 Notes Receivable ($2,000 S/T) 13,000 Interest Revenue 3,000 A) NET INCOME (6 points) - SHOW ALL WORK AND CALCULATIONS!!!! C) RATIOS AND ANALYSIS (6 points): Use the financial statements and additional information to calculate the ratios. Round your answers to two decimal places. Be sure to label your answer correctly (example, %, times, days, etc.). IF AN ANSWER SHOULD BE EXPRESSED AS A PERCENTAGE, DO NOT LEAVE IT IN DECIMAL FORM!!!! i.e. 0.5015 = 50.15%!!!!) Previous (December 31, 2016) year end balances for: Accounts receivable, net of allowance Inventory Stockholders' Equity $2,000 15,000 139,000 Market price per share for one share of common stock at Dec 31, 2017 Dividend per share for one share of common stock for FYE Dec 31, 2017 $94.50/share $1.25/share The number of shares outstanding of common stock was the same throughout 2017. RATIO CALCULATION B) CLASSIFIED BALANCE SHEET (8 points) 1) Quick (Acid-Test) Ratio (1 point) 2) Dividend Yield (1 point) Perfect Reb Corporation Balance Sheet December 31, 2017 LIABILITIES Current Liabilities ASSETS Current Assets 3) Gross Profit Percentage (1 point) 4) Accounts Receivable Turnover (1 point) Total Current Liabilities 5) Inventory Turnover (1 point) Total Current Assets Long-Term Liabilities 6) Price-Earnings Ratio (1 point) Long-Term Assets Total Long-Term Liabilities Total Long-Term Assets Total Liabilities Fixed Assets EQUITY Total Fixed Assets Total Equity TOTAL ASSETS TOTAL LIABILITIES & EQUITY C) RATIOS AND ANALYSIS (6 points): Use the financial statements and additional information to calculate the ratios. Round your answers to two decimal places. Be sure to label your answer correctly (example, %, times, days, etc.). IF AN ANSWER SHOULD BE EXPRESSED AS A PERCENTAGE, DO NOT LEAVE IT IN DECIMAL FORM!!!! (i.e. 0.5015 = 50.15%!!!!) Previous (December 31, 2016) year end balances for: Accounts receivable, net of allowance Inventory Stockholders' Equity $2,000 15,000 139,000 Market price per share for one share of common stock at Dec 31, 2017 Dividend per share for one share of common stock for FYE Dec 31, 2017 $94.50/share $1.25/share The number of shares outstanding of common stock was the same throughout 2017. RATIO CALCULATION ANSWER 1) Quick (Acid-Test) Ratio (1 point) 2) Dividend Yield (1 point) 3) Gross Profit Percentage (1 point) 4) Accounts Receivable Turnover (1 point) 5) Inventory Turnover (1 point) 6) Price-Earnings Ratio (1 point)
