ssig ment 1

Name: Date:

Comparative financial statements for Beint Stew Enterprises are shown below:

December 31 2018 2017 Assets Current assets: Cash $ 3,000 $ 800 Accounts receivable 8,500 6,000 Inventory 12,000 8,200 Prepaid expenses 1,400 900 Total current assets 24,900 15,900 Property, plant, and equipment, net 103,600 123,300 Intangible assets, net 64,000 47,000 Total assets $192,500 $186,200

Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 11,000 $ 12,000 Other current liabilities 11,800 3,200 Total current liabilities 22,800 15,200 Long-term debt 120,000 128,000 Total liabilities 142,800 143,200 Stockholders equity: Common stock 15,000 15,000 Additional paid-in capital 20,000 20,000 Retained earnings 14,700 8,000 Total stockholders equity 49,700 43,000 Total liabilities and stockholders equity $192,500 $186,200

Year Ended December 31 2018 2017 Sales $250,000 $ 230,000 Cost of goods sold 164,000 142,300 Gross margin 86,000 87,700 Operating expenses 64,000 54,000 Operating income 22,000 33,700 Interest expense 7,500 5,900 Earnings before income taxes 14,500 27,800 Income taxes 7,800 7,140 Net earnings $ 6,700 $ 20,660

Using horizontal analysis, how much is the percentage change in cash for Bent Stew Enterprises from 2017 to 2018?

A. 375.00% increase B. 73.33% increase C. 26.67% increase D. 275.00% increase

How much is the companys gross margin percentage for 2018?

A. (1.98%) B. 34.40% C. 98.16% D. 7.80%

Bent Stew Enterprises had 10,000 shares of common stock outstanding during both 2017 and 2018. How much was earnings per share in 2018?

A. $0.15 B. $0.67 C. $1.49 D. $19.25

Using vertical analysis, how would you best describe the change in the companys operating expenses from 2017 to 2018?

A. Operating expenses increased from 1.63% of net earnings to 9.55% of net earnings from 2017 to 2018. B. Operating expenses increased by $10,000 from 2017 to 2018. C. Operating expenses increased from 23.5% to 25.6% of sales from 2017 to 2018. D. Operating expenses increased by 18.5% from 2017 to 2018.

What does vertical analysis for 2018 versus 2017 reveal for Bent Stew Enterprises?

A. There was no change in the proportion of common stock to total assets from 2017 to 2018. B. Inventory levels have decreased from 2017 to 2018 in proportion to total assets. C. Gross margin declined to 34.4% in 2017, down from 38.19% in 2017. D. The company has a higher proportion of long-term debt in 2018 compared to 2017.

How much is Bent Stews asset turnover in 2018?

A. 1.034 B. 0.027 C. 0.770 D. 1.299

How much is Bent Stews inventory turnover for 2018?

A. 7.32 times B. 26.70 times C. 49.86 times D. 13.67 times

The Books incs Statements of financial Positions

2014 2013 Buildings 340.000 325.000 Machinery 35.000 20.000 Equipment 20.000 15.000 Seasonal loan 15.000 10.000 Short term borrowings 10.000 10.000 Inventories 30.000 15.000 Trade receivables. 15.000 30.000 Cash 20.000 10.000 Equity 200.000 150.000 Mortgage 150.000 160.000 Long Term borrowings 50.000 40.000 Trade and other payables 30.000 35.000 Line of credits 5.000 20.000

Classify the accounts ( Assets, Equity and Liabilities) Which are inflows , and which are outflows of cash? What are the total outflows and total inflows? According to the cash inflows how much we received for Internal Sources? According to the cash inflows how much we received for external Sources?