Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Perry's Carpentry Comparative Income Statement For the years ended December 31, 2016, 2015 2016 2015 Assets 7,400 3,360 23,100 300 34,160 4,670 3,510 21,000 200

image text in transcribed
image text in transcribed
Perry's Carpentry Comparative Income Statement For the years ended December 31, 2016, 2015 2016 2015 Assets 7,400 3,360 23,100 300 34,160 4,670 3,510 21,000 200 29,380 Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Capital Equipment Office Equipment Vehicles Land Building Total Capital Equipment 5,600 40,100 50,000 120,000 215,700 4,570 15,000 50,000 120,000 189,570 Total Assets 249,860 218,950 Liabilities Current Liabilities Accounts Payable Total Current Liabilities 1,760 1,760 2,010 2,010 Long-Term Liabilities Long-term bank loan Mortgage Payable Total Long-Term Liabilities 21,400 54,000 75,400 64,850 64,850 Total Liabilities 77,160 66,860 152,090 Owner's Equity G. Perry, Capital 172,700 Total Liabilities and Owner's Equity 249,860 218,950 TASK 1 - Ratio Analysis 1 Use the financial statements below for the following requirements a. Conduct horizontal analysis (calculation only) b. Conduct vertical analysis (calculation only) c. Conduct ratio analysis (calculation only) (DuPont analysis) d. Comment on the management's abilitiy to manage the accounts receivable over the past two years. e. What is a possible explanation for the decrease to the Wages and Salaries expense? f. Explain the reasons for the increase to the bank loan. g. Comment on the current ratio. Comment on the company's financial performance over the past two years based on the detailed analyses above. i. What are the limitation of the above comments? Perry's Carpentry Comparative Income Statement For the years ended December 31, 2016, 2015 2016 2015 152,500 2.900 149,600 133,400 2,040 131,360 105,200 44,400 88,540 42,820 Revenue Sales Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses Advertising Wages and Salaries Auto expense Depreciation Telephone Utilities Insurance Interest & Bank Charges Total Operating Expenses 1,530 10,700 2,030 1,070 1,390 1,450 1.110 4,510 23,790 1,400 11,590 1.970 1.240 1,110 1,370 965 4,380 24,025 Net income 20.610 18.795

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin Arens, Randal Elder, Mark Beasley

14th Edition

1256560812, 9781256560814

More Books

Students also viewed these Accounting questions