Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Plese Help! The CEO of AVRO Enterprises has provided you VCCh the following full and partial balance sheet for Along with the balance sheet, the
Plese Help!
The CEO of AVRO Enterprises has provided you VCCh the following full and partial balance sheet for Along with the balance sheet, the CEO has provided you with his notes from the most recent meeting of AVRO's Finance and Audit Committee, as follows: 1. Net income for the year ended 2 was $55,000 and dividends paid were $25,000. An increase of $5,000 over year 1 's net income. 2. Accounts Receivable decreased by $10,000 over year 2 , inventories decreased by $5,000 over the same period. 3. A recent market value assessment of the land that is owned by AVRO has stated that it is now worth $100,000. The President of AVRO. John Diefenbaker, the CEO's boss, is very excited about this new information. 4. New bulldings were purchased during the period at a cost of $89,000. The CEO has learned that you recently completed an accounting course at NU Beginnings University. He has asked you to complete the following before his next scheduled meeting with the Finance and Audit Committee. 1. Complete AVRO's year 2 balance sheet. (20 Marks) 2. Using the Indirect method, complete a statement of cash flows for AVRQ's year 2 period. (20 Marks) 3. Provide a quick ratio analysis of the following: current ratio, debt-to-equity ratio and return on equity. Has AVRO Enterprises ratios improved over the past year? Justify your answer. (10 Marks) Finally, to aid you in completing these tasks, the CFO has just sent you a quick text message, "make sure that you calculate the long-term debts after you have calculated all of the other balances on the balance sheet. I'm told that these finance geeks call this a plug figureStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started