Quixote Consulting

Income Statement

For the Year Ended June $30,2013$

Revenues:

Fees earned $$13,425$

Total revenues $$13,425$

Expenses:

Salary expense $$920$

Rent expense $1,500$

Supplies expense $980$

Depreciation expense $500$

Insurance expense $150$

Utilities expense $330$

Miscellaneous expense $120$

Total Expenses $4,500$

Net income $$8,925$

Quixote Consulting

Statement of Owners Equity

For the Month Ended June $30,2013$

Dustin Larkin, capital, June $1,2013$ $$0$

Investment on June $1.201320,250$

Net income for June $8,925$

Withdrawals during June $(4,500)$

Increase in owner's equity $24,675$

Dustin Larkin, capital, June $30,2013$ $$24,675$

Quixote Consulting

Balance Sheet

June $30,2013$

Assets

Current assets:

Cash $$8,875$

Accounts receivable $3,450$

Supplies $1,020$

Prepaid rent $3,000$

Prepaid insurance $1,650$

Total current assets $$17,995$

Property, plant, and equipment:

Office equipment $$9,300$

Accumulated depreciation $500$ $$8,800$

Total property, plant, and equipment $8,800$

Total assets $$26,795$

Liabilities

Current liabilities:

Accounts payable $$1,000$

Salaries payable $120$

Unearned fees $1,000$

Total Liabilities $$2,120$

Owner's Equity

Dustin Larkin, capital $24,675$

Total liabilities and owner's equity $$26,795$

$1)$ Some of the ratios do NOT have sufficient data to compute a ratio.

In those ratios, simply type "Insufficient data to Compute".

The objective is to provide you an opportunity to employ critical thinking.

You need to be able to discern whether or not all elements are present.

$2)$ In the ratios that require an "Average" $-$ assume that the BEGINNING Account Balance $=-0-.$

$3)$ Remember, $\mathrm{.}50\%$ is NOT the same as $50\%.$

$4)$ Use all transactions that include "Sales on Account" as "Net Credit Sales".

$5)$ Be sure to include your formulas in the proper cell. If you simply input an answer, feedback may be limited$.$

If you include your computations, additional feedback will be possible when an incorrect answer is given.

$6)$ Complete all ratios in all $3$ sections $-$ Parts A$,$ B & C$.$ There are $4$ ratios in Part A$,2$ in Part B$,$ and $3$ in Part C$.$