Using the Excel spreadsheet prepare an Income statement and a Balance Sheet for The Coffee Hut for a future year. Then prepare various ratio analyses, and a contribution margin analysis, to see how Sues business is doing. Work must be completed on the Excel Template that is attached.

ACC201

Final Project

Current year:

Current year:

Sales

540,000

Operating expenses

229,000

Inventory purchases

162,000

Cash

33,000

Sales and marketing expenses

49,000

Prepaid expenses

9,000

Accounts receivable

23,000

Note payable - current

10,000

Accumulated depreciation

23,000

Administrative expenses

60,000

Accrued expenses

5,000

Common stock

50,000

Interest expense

5,000

Equipment

108,000

Inventory - current year

25,000

Accounts payable

13,000

Dividends

none

Long-term note payable

45,000

Shares outstanding

50,000

Supplies

11,000

Prior year:

Accounts receivable

18,000

Inventory

23,000

Beginning inventory

Total assets

174,000

Common stock

50,000

Goods available

Retained earnings

26,000

Shares outstanding

50,000

Cost of goods sold

The Coffee Hut

The Coffee Hut

Balance Sheet

Income Statement

Current

Current

Current assets:

Revenue:

Ratio

Analysis

Current ratio

Quick ratio

Gross profit

Accounts receivable turnover

Inventory turnover

Expenses:

Debt to assets

Total current assets

Debt to equity

Property, plant and equipment:

Return on sales

Asset turnover

Total expenses

Return on investment

Net equipment

Operating income

Return on equity

Other expenses:

Earnings per share

Total assets

Net income

Current liabilities:

If cost of goods sold is the only variable cost, and the contribution margin

per drink was $3.40, how many coffee drinks were sold during the year,

and what was the average selling price per drink?

Total current liabilities

Long-term liabilities:

Number of drinks sold

Average selling price

Total liabilities

Stockholders' equity:

Total stockholders' equity

Total liabilities and equity

Instructions: 1. The template includes all the data necessary to complete the two financial statements, and ratio analyses. But, the financial statement data is in random order, so you must determine where in each financial statement the items should be placed. . 2. Complete the income statement first, since net income will affect stockholders' equity on the balance sheet. Note that you need to calculate cost of goods sold for the income statement 3. Next, complete the balance sheet, taking into account the effect net income has on stockholders' equity. Before you finish, make sure the balance sheet meets the accounting equation. 4. Now you can complete your ratio analyses. Since certain ratios require prior year data, that data has also been included in the template. After calculating the ratios, add a brief analysis about what each ratio means for The Coffee Hut's financial position and results of operations. 5. The final step is to complete the contribution margin question. If cost of goods sold is the only variable cost, and the contribution margin per drink is $3.40, how many coffee drinks did The Coffee Hut sell? What was the average selling price? Instructions: 1. The template includes all the data necessary to complete the two financial statements, and ratio analyses. But, the financial statement data is in random order, so you must determine where in each financial statement the items should be placed. . 2. Complete the income statement first, since net income will affect stockholders' equity on the balance sheet. Note that you need to calculate cost of goods sold for the income statement 3. Next, complete the balance sheet, taking into account the effect net income has on stockholders' equity. Before you finish, make sure the balance sheet meets the accounting equation. 4. Now you can complete your ratio analyses. Since certain ratios require prior year data, that data has also been included in the template. After calculating the ratios, add a brief analysis about what each ratio means for The Coffee Hut's financial position and results of operations. 5. The final step is to complete the contribution margin question. If cost of goods sold is the only variable cost, and the contribution margin per drink is $3.40, how many coffee drinks did The Coffee Hut sell? What was the average selling price