warner company balance sheet - What am I doing wrong?

Warner Company Balance Sheet

Current Assets

Cash

225,000

Accounts Receivable

167,500

Inventory

99300

Long Term (fixed) assets

Building and Equipment

895,000

Accumulated Depreciation

-263,000

Total assetts

1,123,800

Current Liabilities

Accounts payable

102,000

Notes payable

75,000

Long-term Liabilities

Long term Debt

334,000

Owners Equity

Capital stock

$289,000

Retained earnings

0

Total

$289,000

Total liabilities and equity

1,649,800

Q. What can you say about the firms financial condition based on these financial statements?

Warner Company Income Statement

They have a decent cost of goods sold ratio compared to the sales. However the return on investment appears to be lower due to extensive long term debt

ASSETS

LIABILITIES

Current Assets

Current Liabilities

Cash

$225,000

Accounts payable

$102,000

Accounts receivable

167,500

Short-term notes

75,000

(less doubtful accounts)

Current portion of long-term notes

Inventory

99,300

Interest payable

4,750

Temporary investment

Taxes payable

53,000

Prepaid expenses

Accrued payroll

Q. Using the CSU Online Library find one article that discuses financial statements, cash flow, or ratio analysis. Briefly summarize the key points of the article as it relates to this unit. You may use any of the databases, but Business Source Complete is a good starting place.

Total Current Assets

$491,800

Total Current Liabilities

$234,750

Fixed Assets

Long-term Liabilities

Long-term investments

Mortgage

Land

Other long-term liabilities

334,000

Buildings

895,000

Total Long-Term Liabilities

$334,000

(less accumulated depreciation)

263,000

Plant and equipment

(less accumulated depreciation)

Shareholders' Equity

Furniture and fixtures

Capital stock

(less accumulated depreciation)

Retained earnings

1,081,050

Total Net Fixed Assets

$1,158,000

Total Shareholders' Equity

$1,081,050

TOTAL ASSETS

$1,649,800

TOTAL LIABILITIES & EQUITY

$1,649,800