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Total Assets 670,396 637,854 32,542 5.1% Liabilites and Equity Current liabilites Accounts payable Bank loans and other payables Current portion of notes payable Total current liabilites Long term liablites Notes payable (11%) Total liabilites Equity: Preference shares, P8 dividend, P100 par Ordinary shares, P1 par value Additional paid-in capital Total paid in capital Retained earnings Total equity Total liablites and equity 19079 14903 13.7% 26.3% 158214 71672 30000 259886 139135 56769 30000 225904 0.0% 33982 15.0% 139000 398886 169000 394904 -30000 3982 -17.8% 1.0% 70000 10000 90000 170000 101510 271510 670396 70000 10000 90000 170000 72950 242950 637854 0.0% 0.0% 0.0% 0.0% 39.2% 28560 28560 11.8% 32542 5.1% Music Lover, Inc. Comparative Income Statement December 31,2019 and 2018 2019 2018 Amount Percent 11.0% Sales revenue Expenses Cost of goods sold Selling Administrative Total expenses Operating income Interest expense 2,000,000 1,801,802 198,198 12.4% 7.8% 1,472,000 1,309,910 162,090 248,000 230,000 18,000 (4,000) -2.8% 138,000 1,858,000 142,000 27,907 114,093 142,000 1,681,910 10.5% 176,090 22,108 (1,363) 23,471 8,215 18.4% -4.7% 25.9% 25.9% 25.9% 119,892 29,270 90,622 Income before taxes Income taxes (35%) Net income 39,933 31,718 74,160 58,904 15,256 Dividends to preference shareholders Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings beginning of year Retained earnings end of year 5,600 5,600 0.0% 349.4% 400.0% 293.6% 242.4% 255.4% 68,560 53,304 32,000 21,304 51,646 72,950 15,256 8,000 7,256 40,000 28,560 72,950 101,510 21,304 28,560

Total Assets 670,396 637,854 32,542 5.1% Liabilites and Equity Current liabilites Accounts payable Bank loans and other payables Current portion of notes payable Total current liabilites Long term liablites Notes payable (11%) Total liabilites Equity: Preference shares, P8 dividend, P100 par Ordinary shares, P1 par value Additional paid-in capital Total paid in capital Retained earnings Total equity Total liablites and equity 19079 14903 13.7% 26.3% 158214 71672 30000 259886 139135 56769 30000 225904 0.0% 33982 15.0% 139000 398886 169000 394904 -30000 3982 -17.8% 1.0% 70000 10000 90000 170000 101510 271510 670396 70000 10000 90000 170000 72950 242950 637854 0.0% 0.0% 0.0% 0.0% 39.2% 28560 28560 11.8% 32542 5.1% Music Lover, Inc. Comparative Income Statement December 31,2019 and 2018 2019 2018 Amount Percent 11.0% Sales revenue Expenses Cost of goods sold Selling Administrative Total expenses Operating income Interest expense 2,000,000 1,801,802 198,198 12.4% 7.8% 1,472,000 1,309,910 162,090 248,000 230,000 18,000 (4,000) -2.8% 138,000 1,858,000 142,000 27,907 114,093 142,000 1,681,910 10.5% 176,090 22,108 (1,363) 23,471 8,215 18.4% -4.7% 25.9% 25.9% 25.9% 119,892 29,270 90,622 Income before taxes Income taxes (35%) Net income 39,933 31,718 74,160 58,904 15,256 Dividends to preference shareholders Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings beginning of year Retained earnings end of year 5,600 5,600 0.0% 349.4% 400.0% 293.6% 242.4% 255.4% 68,560 53,304 32,000 21,304 51,646 72,950 15,256 8,000 7,256 40,000 28,560 72,950 101,510 21,304 28,560

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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Evaluate the company's financial position and results of operation using the comparative statement analysis: i. Short-term solvency analysis ii. Long-term financial position analysis iii. Operating efficiency and profitability analysis
Comparative Statement of Financial Position December 31,2019 and 2018 2019 2018 Amount Percent Assets Current assets: Cash 70,392 68,250 2,142 3.1% Accounts receivable (net) Inventory Prepaid expenses Total current assets Noncurrent assets Plant, property and equipment (net) Total Assets 218,549 184,978 33,571 18.1% 223,242 197,097 26,145 13.3% 67,710 76,542 -8,832 -11.5% 579,893 526,867 53,026 10.1% 90,503 110,987 (20,484) -18.5% 670,396 637,854 32,542 5.1% Liabilites and Equity Current liabilites Accounts payable Bank loans and other payables Current portion of notes payable Total current liabilites 158214 139135 19079 13.7% 71672 56769 14903 26.3% 30000 30000 0.0% 259886 225904 33982 15.0% Long term liablites Notes payable (11%) Total liabilites 139000 398886 169000 394904 -30000 -17.8% 3982 1.0% Equity: Preference shares, P8 dividend, P100 par Ordinary shares, P1 par value Additional paid-in capital Total paid in capital Retained earnings Total equity 70000 70000 0.0% 10000 10000 0.0% 90000 90000 0.0% 170000 72950 170000 0.0% 101510 28560 39.2% 271510 242950 28560 11.8% Total liablites and equity 670396 637854 32542 5.1% Music Lover, Inc. Comparative Income Statement December 31,2019 and 2018 2019 2018 Amount Percent Sales revenue 2,000,000 1,801,802 198,198 11.0% Expenses Cost of goods sold Selling 1,472,000 1,309,910 12.4% 162,090 18,000 248,000 230,000 7.8% Administrative 138,000 142,000 (4,000) -2.8% Total expenses Operating income Interest expense Income before taxes 1,858,000 1,681,910 176,090 10.5% 142,000 119,892 22,108 18.4% 27,907 29,270 (1,363) -4.7% 114,093 90,622 23,471 25.9% Income taxes (35%) 31,718 58,904 39,933 8,215 25.9% Net income 74,160 15,256 25.9% Dividends to preference shareholders 5,600 5,600 0.0% Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings beginning of year Retained earnings end of year 68,560 53,304 15,256 349.4% 40,000 32,000 8,000 400.0% 28,560 21,304 7,256 293.6% 72,950 51,646 21,304 242.4% 101,510 72,950 28,560 255.4%
Transcribed Image Text:Comparative Statement of Financial Position December 31,2019 and 2018 2019 2018 Amount Percent Assets Current assets: Cash 70,392 68,250 2,142 3.1% Accounts receivable (net) Inventory Prepaid expenses Total current assets Noncurrent assets Plant, property and equipment (net) Total Assets 218,549 184,978 33,571 18.1% 223,242 197,097 26,145 13.3% 67,710 76,542 -8,832 -11.5% 579,893 526,867 53,026 10.1% 90,503 110,987 (20,484) -18.5% 670,396 637,854 32,542 5.1% Liabilites and Equity Current liabilites Accounts payable Bank loans and other payables Current portion of notes payable Total current liabilites 158214 139135 19079 13.7% 71672 56769 14903 26.3% 30000 30000 0.0% 259886 225904 33982 15.0% Long term liablites Notes payable (11%) Total liabilites 139000 398886 169000 394904 -30000 -17.8% 3982 1.0% Equity: Preference shares, P8 dividend, P100 par Ordinary shares, P1 par value Additional paid-in capital Total paid in capital Retained earnings Total equity 70000 70000 0.0% 10000 10000 0.0% 90000 90000 0.0% 170000 72950 170000 0.0% 101510 28560 39.2% 271510 242950 28560 11.8% Total liablites and equity 670396 637854 32542 5.1% Music Lover, Inc. Comparative Income Statement December 31,2019 and 2018 2019 2018 Amount Percent Sales revenue 2,000,000 1,801,802 198,198 11.0% Expenses Cost of goods sold Selling 1,472,000 1,309,910 12.4% 162,090 18,000 248,000 230,000 7.8% Administrative 138,000 142,000 (4,000) -2.8% Total expenses Operating income Interest expense Income before taxes 1,858,000 1,681,910 176,090 10.5% 142,000 119,892 22,108 18.4% 27,907 29,270 (1,363) -4.7% 114,093 90,622 23,471 25.9% Income taxes (35%) 31,718 58,904 39,933 8,215 25.9% Net income 74,160 15,256 25.9% Dividends to preference shareholders 5,600 5,600 0.0% Net income remaining for ordinary shareholders Dividends to ordinary shareholders Net income added to retained earnings Retained earnings beginning of year Retained earnings end of year 68,560 53,304 15,256 349.4% 40,000 32,000 8,000 400.0% 28,560 21,304 7,256 293.6% 72,950 51,646 21,304 242.4% 101,510 72,950 28,560 255.4%
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