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Year n Year n-1 1 Short-term investments - 100 2 Interest 250 100 3 Depreciation and amortization 350 700 4 Common dividends 500 500 5
Year n | Year n-1 | |||||||||||||
1 | Short-term investments | - | 100 | |||||||||||
2 | Interest | 250 | 100 | |||||||||||
3 | Depreciation and amortization | 350 | 700 | |||||||||||
4 | Common dividends | 500 | 500 | |||||||||||
5 | Cash | 550 | 500 | |||||||||||
6 | Accruals | 550 | 500 | |||||||||||
7 | Notes payable | 1,000 | 200 | |||||||||||
8 | Accounts payable | 1,100 | 1,000 | |||||||||||
9 | Long-term debt | 1,500 | 1,000 | |||||||||||
10 | Inventories | 1,650 | 1,500 | |||||||||||
11 | Accounts receivable | 2,750 | 2,500 | |||||||||||
12 | Common stock | 5,000 | 4,000 | |||||||||||
13 | Operating costs excluding depreciation | 9,000 | 9,500 | |||||||||||
14 | Sales | 10,000 | 12,500 | |||||||||||
15 | Tax rate | 40% | 40% | |||||||||||
16 | Net plant and equipment | 4,000 | 4,200 | |||||||||||
Questions | ||||||||||||||
Using the data from Years n and n-1 below, answer the following questions. | ||||||||||||||
1. What are the companys assets, liabilities, and shareholder equity in Year n and n-1? | ||||||||||||||
2. What story does the balance sheet tell about changes in short term investments from Year n-1 to Year n? | ||||||||||||||
3. What story does the balance sheet tell about changes in notes payable from Year n-1 to Year n? | ||||||||||||||
4. What is the companys net income in Year n and n-1? |
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