Question
Submit a paper which is 2-3 pages in length ( no more than 3-pages ), exclusive of the reference page. Your paper should be double
Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. Your paper should be double spaced in Times New Roman (or its equivalent) font, which is no greater than 12 points in size. Cite at least three sources in APA format.
In this paper, in addition to presenting the computed answers, please also discuss how you arrived at each answer the accounting problem asks. The accounting problem presents a companys balance sheet, income statement, and statement of cash flows for a theoretical company, Pollys Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. Include in this narrative an explanation of:
- the financial statement being completed;
- the account being valued;
- its relationship to the other financial data.
For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and explain that you can derive the AP value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion about the companys performance based on the completed statements.
Please refer to the income statement, balance sheet, and statement of cash flows of Pollys Pet Products.
Superior papers will mention and explain the following elements when responding to the assignment question:
- Provide correct balances for the blank financial account lines.
- Define the financial statement being completed.
- Discuss how the values were determined.
- Define and explain each account line that was completed.
- Analyze, evaluate, and develop conclusions about the companys performance based on the financial information.
Be sure to use APA formatting in your paper.
Polly's Pet Products | ||
Balance Sheet as of December 31, 2018 | ||
ASSETS | ||
CURRENT ASSETS | ||
Cash | ||
Accounts receivable | 50,000 | |
Other assets | 25,000 | |
Total current assets | ||
LONG TERM ASSETS | ||
Fixed Assets | 75,000 | |
TOTAL ASSETS | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
CURRENT LIABILITIES | ||
Accounts payable | 75,000 | |
Accrued expenses | ||
Income tax payable | 5,000 | |
Current portion of notes payable | 12,000 | |
Deferred income taxes | 1,500 | |
Total current liabilities | 123,500 | |
LONG TERM LIABILITIES | ||
Notes payable (long term) | ||
TOTAL LIABILITIES | 161,500 | |
STOCKHOLDERS' EQUITY | ||
Common stock | 5,000 | |
Additional paid-in capital | 15,000 | |
Retained Earnings | ||
Total stockholders' equity | ||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY | ||
Polly's Pet Products | |
Income Statement as of December 31, 2018 | |
Revenues | 650,000 |
Operating Costs | |
Gross Profit | 205,000 |
General and Administrative Expenses | 75,000 |
Operating Income | |
Other Expense | 60,000 |
Income Before Provision for Income Taxes | |
Provision for Income Taxes | 5,000 |
Net Income | |
Retained Earnings, Beginning Balance | 103,500 |
Net Income | |
Retained Earnings, Ending Balance |
Polly's Pet Products | |||
Statement of Cash Flows as of December 31, 2018 | |||
Cash Flows from Operating Activities | |||
Cash received from customers | 600,000 | ||
Cash paid out to suppliers and employees | |||
Interest paid | (5,000) | ||
Taxes paid | (10,000) | ||
Net cash provided by operating activities | 185,000 | ||
Cash Flows from Investing Activities | |||
Purchase of fixed assets | (25,000) | ||
Net cash used in investing activities | (25,000) | ||
Cash Flows from Financing Activities | |||
New loans | 50,000 | ||
Repayments on loans | (45,000) | ||
Issuance of common shares of stock | 5,000 | ||
Net cash provided by financing activities | |||
Net change in Cash | |||
Cash balance, beginning of year | 30,000 | ||
Cash balance, end of year |
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