Question
Show all of your work. Assets Liabilities and Owners Equity A/P $60,000 LT Debt 100,000 Total Debt 160,000 CS, par 2,000 PIC 50,000 R/E 50,000
Show all of your work.
Assets Liabilities and Owners Equity
| A/P | $60,000 |
| LT Debt | 100,000 |
| Total Debt | 160,000 |
| CS, par | 2,000 |
| PIC | 50,000 |
| R/E | 50,000 |
| Total Equity | $102,000 |
| Total Liabilities and Owners Equity | $262,000 |
| Cash | $1,000 |
| A/R | 6,500 |
| Inventory | 62,500 |
| Prepaids | 12,000 |
| Fixed Assets | 250,000 |
| Accum Depreciation | (70,000) |
| Total Assets | $262,000 |
| Sales | $800,000 |
| COGS | 370.000 |
| Gross Profit | 430,000 |
| Operating Exp. | -170,000 |
| Depreciation | -10,000 |
| EBIT | 250,000 |
| Interest | -10,000 |
| EBT | 240,000 |
| Taxes | -80,000 |
| Net Income | $160,000 |
Prepare a financial analysis of this company (using ratios and your rationale) and comment on its status and performance in the space below. Use another page if you need more room. Explain what the ratios depict about the financial status of the company.
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
