Activity 2: Prepare a vertical analysis of DEF Statement of Financial Position and Statement of Comprehensive Income. DEF Company Statement of Financial Position As of December 31, 2016 ASSETS Cash 500,000 80,000 Accounts Receivable Inventory Land Patent Total Assets 60,000 700,000 90.000 1.430,000 100% LIABILITIES Accounts Payable Notes Payable Total Liabilities 400,000 250,000 650,000 OWNER'S EQUITY X's Capital Total Liabilities & OE 780,000 1,430.000 100% DEF Company Statement of Comprehensive Income As of December 31, 2016 Net Sales Less: COGS Gross Profit Less: Operating Expenses Operating Income Less: Interest Expense Net Income before Tax 950,000 180.000 770,000 180,000 590,000 25,000 565,000 180,000 385.000 100% Less: Income Tax Net Income after Tax

Activity 2: Prepare a vertical analysis of DEF Statement of Financial Position and Statement of Comprehensive Income. DEF Company Statement of Financial Position As of December 31, 2016 ASSETS Cash 500,000 80,000 Accounts Receivable Inventory Land Patent Total Assets 60,000 700,000 90.000 1.430,000 100% LIABILITIES Accounts Payable Notes Payable Total Liabilities 400,000 250,000 650,000 OWNER'S EQUITY X's Capital Total Liabilities & OE 780,000 1,430.000 100% DEF Company Statement of Comprehensive Income As of December 31, 2016 Net Sales Less: COGS Gross Profit Less: Operating Expenses Operating Income Less: Interest Expense Net Income before Tax 950,000 180.000 770,000 180,000 590,000 25,000 565,000 180,000 385.000 100% Less: Income Tax Net Income after Tax

Name: GRADE 12% of assetsCash200,000200.000/1.400,000 = 14.3%Accounts Recei
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Description: GRADE 12% of assetsCash200,000200.000/1.400,000 = 14.3%Accounts Receivable400,000400,000/1,400,000 = 28.6%Inventory250.000250,000/1,400,000 = 17.9%Equipment550,000550.000/1.400.000 = 39.3%Total Assets1,400,000Sum of the components is 100%Accounts Pa

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.6P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Inventory turnover
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16. Quick assets P208,000 Acid test ratio 2.6 to 1 Current ratio 3.5 to 1 Net sales for the year P1,800,000 Cost of sales for the year P990,000 Average total assets P1,200,000 The company’s inventory balances at December 31 is? The company’s asset turnover ratio for the year is?
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Where is 63000 coming from? Current Assets ($73,000)- 63000 = $10, 5000 (Inventory)
2. What is the Cost of Goods Available for Sale for the year? Beginning Inventory: $10,000Purchase for the year: $113,000Freight-in for the shipping under F.O.B Shipping Point term: $5,000Purchase Discount for the year: $12,000Purchase Return for the year: $6,000End of the year physical inventory balance: $35,000
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Complete: Current Assets Amount Round to Nearest Hundredth Percent Cash $12,000 % Accounts receivable $9,000 % Prepaid rent $5,000 % Merchandise inventory $28,000 % Total current assets 100 %