# CompanyNet SalesGross profit.Compute the percentage of annual net sales generated each quarter by Company C. Round tob. Compute the percentage of annual net sales generated each quarter by Company D. Round toRequireda.Which company has the most seasonal business? Briefly explain.Which company is Toys "R" Us? The Gillette Company? Briefly explain.the nearest percent.the nearest percent.C.d.(Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1 through Chapter 12.)Kate is very pleased with the results of the first year of operations for Kate's Cards. She ended theyear on a high note, with the company's reputation for producing quality cards leading to more busi-ness than she can currently manage. Kate is considering expanding and bringing in several employ-ees. In order to do this, she will need to find a larger location and also purchase more equipment. Allthis means additional financing. Kate has asked you to look at her year-end financial statements as ifyou were a banker considering giving Kate a loan. Comment on your findings and provide calcula-SERIAL PROBLEM: KATE'S CARDSSP13.tions to support your comments.KATE'S CARDSIncome StatementYear Ended August 31, 2019Sales revenue. . ..Cost of goods sold.. . ..Gross profit. .... \$185,000106,00079,000Operating expensesWagesConsulting..18,000Insurance ...11,850Utilities .....1,200Rent ... ..Depreciation. ..Total operating expenses. . .Income from operations... ..Interest expense. . . . .2,40014,4003,25051,10027,900Income before income tax .... .Income tax expense.. ...Net income.....90027,0005,400\$ 21,600 DSBalance SheetAugust 31, 2019AssetsCurrent assetsCash..Accounts receivable..arInventory. .Prepaid insurance. ..Total current assets .Equipment ... . .Accumulated depreciation .\$17,40011,000O.86.516,000.261,00045,40017,500Total assets .3,250LiabilitiesCurrent liabilitiesAccounts payable...Unearned revenue .Other current liabilities..\$59,650toto6,2001,2501,900Total current liabilities. .Note payable9,35015,000Total liabilities.24,350Stockholders' equityCommon stock.. . .Additional paid-in-capitalPreferred stock. . .Retained earnings.Total stockholders' equity. ...Total liabilities and stockholders' equity5009,5005,00020,30035,300\$59,650KATE'S CARDSStatement of Cash FlowsYear Ended August 31, 2019Cash flow from operating activitiesNet income ..Add depreciation. ..Increase in accounts receivable. . .Increase in inventory. . . .Increase in prepaid expenses. . .Increase in accounts payable. . .Increase in unearned revenue\$21,6003,250(11,000)(16,000)(1,000)6,2001,2501,900Increase in other current liabilitiesCash provided by operating activities.. . ..Cash flow from investing activitiesPurchase of equipment...6,200(17,500)(17,500)Cash used by investing activities....Cash flow from financing activitiesProceeds from bank note . . .Issuance of common stock. ..Issuance of preferred stock. . . .Cash dividends. . . . .15,00010,0005,000(1,300)*28,700Cash provided by financing activities... ..Net increase in cash.....Cash at beginning of year. . ..Cash at end of year . . .17,4000\$17,400"Kate issued cash dividends on both the common stock and the preferred stock. There are 50 preferred sharesoutstanding and 500 common shares outstanding. The dividends that Kate paid were \$6 per share on the preferredshares and \$2 per share on the common shares.

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Asked Oct 10, 2019
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Kate is considering expanding and bringing in several employees. To do this she will need a larger facility and to purchase more equipment. Which means additional financing.
Answer this: look at the financial statements as if you were a banker considering her for a loan comment on your findings and use calculations to support your answer.

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To Provide Loan to Kate, as a banker we need to e...

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