Version 1 Company - Matisse Company Reporting Year - 2016 (Corporation Uses a Calendar Year Jan. 1 through Dec. 31st List of Accounts Common Stock, Total $0.68 Dividends $132.00 Other Expense $378.00 Trading Securities $395.00 Sales Tax Payable $582.00 Purchase Discounts $826.00 General Expense $982.00 Rent Revenue $1,001.00 Purchase Returns & Allowances $1,200.00 Accounts Payable $1,715.00 Interest Payable (Current) $1,900.00 Estimated Warranty Liability $1,949.00 Deferred Income Tax $1,971.00 Unearned Revenue $2,000.00 Capital Lease Obligation $2,245.00 Allowance for Doubtful Accounts $2,400.00 Prepaid Expenses $2,560.00 Notes Payable - Maturity 2018 $2,992.00 Operating Activities - Net Cash Inflow $3,000.00 Held to Maturity Investments $3,079.00 Accrued Wage & Salary $3,100.00 Other Long Term Assets $3,280.00 Income Taxes Payable $3,550.00 Financing Activities - Net Cash Outflow $4,000.00 Inventory $4,200.00 Bond Payable (Maturity 2020) $4,562.00 Sales Returns $4,600.00 Intangibles, Net $4,607.00 Administrative Expense $5,000.00 Investing Activities - Net Cash Inflow $6,000.00 Selling Expense $8,000.00 Accumulated Depreciation, Total $8,863.00 Research & Development $9,832.00 Accounts Receivable $13,249.00 Total Current Liabilities (12/31/15) $15,230.00 Goodwill, Net $15,599.00 Cost of Goods Sold $25,313.00 Total Liabilities (12/31/15) $26,120.00 Additional Paid-In Capital $29,187.32 Property/Plant/Equipment $32,746.00 Cash & Equivalents (Beginning Bal. 1/1/2016) $59,000.00 Total Current Assets (12/31/15) $77,301.00 Gross Sales Revenue $80,000.00 Total Owners Equity (12/31/15) $102,380.00 Total Assets (12/31/15) $128,500.00 Additional Information: The current portion of Total Capital Lease Obligation is $2,009. During 2016, the company repurchased common stock for $394. Deferred Income Tax will reverse in 2017. Inventory balance of $4,200 does not include adjustments for returns, allowances and discounts. Sales Allowances were 10% of Gross Sales. Sales Discounts were 3% of Gross Sales. Prepayment for future services/goods will be earned in 2017. The company's reporting period is the same as a calendar year. Income Tax Rate is 30% Warranty Liability represents expected repairs in 2017. Total Owners' Equity on 12/31/2016 is $103,860

ACCT 322 Financial Statements Project Instructions Required: 1. Using Microsoft Excel, prepare an Income Statement for the year ended 2016. - Show the % of each revenue item in relation to total revenues. - Show the % of each expense item in relation to total expenses. 2. Using Microsoft Excel, prepare a Balance Sheet for the 2016. - Show the % of each asset in relation to total assets. - Show the % of each liability in relation to total liabiities. 3. Compute the Current Ratio for 2016. (Current Assets / Current Liabilities). 4. Compute the Debt to Asset Ratio for 2016. (Liabilities / Assets) 5. Compute the Gross Profit Margin for 2016. (Gross Profit / Total Revenue) 6. Compute the Net Profit Margin for 2016. (Net Income / Total Revenue) 7. Compute Return on Assets for 2016. (Net Income / Average Assets) 8. Compute Return on Equity for 2016. (Net Income / Average Equity) 9. Comparing the year 2016 to 2015, is the company more liquid or less liquid in 2016? 10. Comparing the year 2016 to 2015, is the company more solvent or less solvent in 2016? Templates

Income Statement % Balance Sheet % Financial Ratios 3. Compute the Current Ratio for 2016. 4. Compute the Debt to Asset Ratio for 2016. 5. Compute the Gross Profit Margin for 2016. 6. Compute the Net Profit Margin for 2016. 7. Compute Return on Assets for 2016. 8. Compute Return on Equity for 2016. 9. Comparing the year 2016 to 2015, is the company more liquid or less liquid in 2016? 10. Comparing the year 2016 to 2015, is the company more solvent or less solvent in 2016? This is all of the information given