Review the AC499 Financial Report Analysis Unit 4 Ratio Sheet.

Step 3: Financial Analysis

Complete a financial analysis of the company financials for Quixote Consulting. Use the Excel Template titled: "Unit 4 Financial Report Analysis Template. Be sure to review the Excel tab titled Hints & Instructions before you attempt the assignment tab.

Note: This Quixote Company file will be your graded Unit 4 assignment, not the Rainbow Company practice assignment.

When you are ready, you may submit your Quixote Ratio Analysis Excel template to the Unit 4 Dropbox page.

Note: Include your name in the filename of the assignment.

Very Important Note: The Practice Set is based on data for Rainbow Paint Company. Do NOT submit the Rainbow solutions in the Unit 4 assignment Dropbox.

The Unit 4 assignment is based on the Quixote data accumulated in Units 2 and 3. However, The Rainbow Paint Company data will be a VITAL and integral component of your Unit 9 final project. So, please complete the practice exercise AND keep your work saved in a file for later use.

Quixote Consulting Income Statement For the Month Ended June 30, 2010

Revenues:

Fees Earned $12,425

Expenses:

Salary Expenses 920

Rent Expense 1,500

Supplies Expense 980

Depreciation Expense 500

Insurance Expense 150

Miscellaneous Expense 450

Total Expenses 4,500

Net Income $7,925

Quixote Consulting Statement of Owners Equity For the Month Ended June 30, 2010

Dustin Larkin Capital June 1 $-

Add: Additional Investment 20250

Add: Net Income 7,925

Subtotal 28,175

Less: Drawings 4,500

Dustin Larkin Capital June 30 $23,675

Quixote Consulting Balance Sheet June 30, 2010

Assets:

Current Assets

Cash 8,875

Accounts Receivable 3,450

Supplies 1,020

Prepaid Rent 3,000

Prepaid insurance 1,650

17,995

Noncurrent Assets

Office Equipment 9,300

Less: Accumulated Depreciation 500 8,800

Total Assets $26,795

Liabilities:

Accounts Payable 1,000

Salaries Payable 120

Unearned fees 2,000

Total Liabilities 3,120

Stockholders' Equity:

Dustin Larkin, Capital 23,675

Total Stockholders' Equity 23,675

Total Liabilities &