1.
Concept Introduction:
To prepare: The balance sheet of company T for years 1 and year 2 ended December 31.
2.
Concept Introduction:
Net income: Net income refers to the income generated by subtracting all expenses from the income of the company. It is shown in the Income statement of the company. Net income is very important to know the actual earnings of the company.
The net income of company T in year 2 ended December 31.
3.
Concept Introduction:
Debt ratio analysis: Debt ratio refers to the relation of all the debts of the company with the assets of the company. It shows the ability of the company to pay its debts in a good way i.e. it shows the solvency of the company.
The debt ratio of company T in year 2.
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GEN. COMBINED FIN.+MAN.ACCT LCPO
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- FIN ANCIAL RATIO S Based on the financial statements for Jackson Enterprises (income statement, statement of owner’s equity, and balance sheet) shown on pages 596–597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was $21,600.1. Working capital2. Current ratio3. Quick ratio4. Return on owner’s equity5. Accounts receivable turnover and average number of days required to collect receivables6. Inventory turnover and average number of days required to sell inventoryarrow_forwardBelow is the balance sheet and income statement for Chin Corporation. You are needed to analyze the financial statements. Use the horizontal, vertical, ratio methods to analyze the financial statements. For the vertical and horizontal analysis, type the accounts and dollar values for the years 2018 and 2017 (as listed on the financial statements even if there is no dollar value for an account). For the ratio analysis, make sure to compute 2 ratios from each section. Income Statement Period Ending: 12/31/2018 12/31/2017   Total Revenue $76,512,000 $78,291,000   Cost of Revenue $54,884,000 $56,586,000   Gross Profit $21,628,000 $21,706,000   Operating Expenses     Research and Development $0 $0   Sales, General, and Admin. $13,886,000 $13,599,000   Non-Recurring Items $0 $0   Other Operating Items $0 $0   Operating Income $7,832,000 $8,079,000   Add'l income/expense items -$323,000…arrow_forwardProblem 3-8 Financial Statements (LO1) Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET $ 35 Payables Less accumulated depreciation Inventories $50 120 Receivables 35 Total current assets Total current liabilities Interest expense $ 25 Long-term debt Property, plant, and equipment $350 520 Total liabilities Net fixed assets Shareholders' equity $90 Total liabilities and Total assets shareholders' equity INCOME STATEMENT Net sales $700 Cost of goods sold Selling, general, and administrative expenses 580 38 ЕBIT Debt due for repayment $ 25 Cash 15 Taxable income Тахes $ 15 Depreciation 12 Net incomearrow_forward
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