ACC-202 Lecture Notes - Lecture 31: Retained Earnings, Income Statement
33 views2 pages
4 Apr 2016
School
Department
Course
Professor
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
Financial StatementAnalysis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. Within this workbook there is a worksheet labeled "AdjustedTrial Balances". Within that worksheet you will find fullycompleted trial balances for three years. Also within this workbookyou will find worksheets for comparative income statements andcomparative balance sheets. Using the trial balances andcomparative financial statements you need to calculate a variety ofratios. You will find the required ratios in the worksheet labeled"Ratios Historical". Complete all the required ratios. You MUST useformulas and/or linking to compute your ratios. You can not simplyhard key the answers. You must reference the appropriate data fromthe trial balances and comparative financial statements.
|
AC Speed | |||||||||
Income Statement | |||||||||
12/31/15 | 12/31/14 | 12/31/13 | 12/31/12 | 5/31/15 | |||||
Sales Revenue | |||||||||
Sales | 8,850,000 | 8,874,000 | 9,051,480 | 9,141,995 | 725,000 | ||||
Less: Sales Returns & Allowances | 0 | 0 | 0 | 0 | 0 | ||||
Sales Discounts | 0 | 0 | 0 | 0 | 0 | ||||
Net Sales | 8,850,000 | 8,874,000 | 9,051,480 | 9,141,995 | 725,000 | ||||
Cost of Goods Sold | 7,656,000 | 7,661,551 | 7,625,748 | 7,852,006 | 638,000 | ||||
Gross Profit | 1,194,000 | 1,212,449 | 1,425,732 | 1,289,989 | 87,000 | ||||
Operating Expenses | |||||||||
Wage Expense (hourly workers) | 120,000 | 122,400 | 124,848 | 126,096 | 10,000 | ||||
Salaries Expense (Exempt Staff) | 360,000 | 367,200 | 374,544 | 378,289 | 30,000 | ||||
Marketing Expense | 288,000 | 293,760 | 299,635 | 302,632 | 24,000 | ||||
Travel and Entertainment Expense | 27,600 | 28,152 | 28,715 | 29,002 | 2,300 | ||||
Bad Debt Expense | 0 | 0 | 0 | 0 | 0 | ||||
Property Tax Expense | 0 | 0 | 0 | 0 | 0 | ||||
Office Maintenance & RepairExpense | 6,000 | 6,120 | 6,242 | 6,305 | 500 | ||||
Legal Expenses | 198,600 | 202,572 | 206,623 | 208,690 | 16,550 | ||||
Insurance Expense | 24,000 | 24,480 | 24,970 | 25,219 | 2,000 | ||||
Utilities Expense | 12,000 | 12,240 | 12,485 | 12,610 | 1,000 | ||||
Office Supplies Expense | 3,480 | 3,550 | 3,621 | 3,657 | 290 | ||||
Telecommunications Expense | 660 | 673 | 687 | 694 | 55 | ||||
Depreciation Expense - Equip &Furniture - Warehouse | 1,980 | 2,020 | 2,060 | 2,081 | 165 | ||||
Depreciation Expense - Equip &Furniture - Office | 1,680 | 1,714 | 1,748 | 1,765 | 140 | ||||
Total Operating Expenses | 1,044,000 | 1,064,880 | 1,086,178 | 1,097,039 | 87,000 | ||||
Operating Income | 150,000 | 147,569 | 339,554 | 192,950 | 0 | ||||
Other Revenues & Gains | |||||||||
Rent Income | 0 | 0 | 0 | 0 | #REF! | ||||
0 | 0 | 0 | 0 | #REF! | |||||
Other Expenses & Losses | |||||||||
Interest Expense | 0 | 0 | 0 | 0 | 0 | ||||
0 | 0 | 0 | 0 | 0 | |||||
Net Income | 150,000 | 147,569 | 339,554 | 192,950 | #REF! | ||||
Common Dividends | 19,200 | 16,130 | 15,000 | 1,600 | |||||
Weighted Average Common Shares | 65,000 | 65,000 | 65,000 | 62,500 | |||||
Market Price per Common Share | 35.00 | 34.00 | 31.00 | 34.00 |
AC Speed | |||||||||
Balance Sheet | |||||||||
12/31/15 | 1/0/00 | 12/31/14 | 1/0/00 | 12/31/13 | 1/0/00 | 12/31/12 | 1/0/00 | 5/31/15 | |
ASSETS | |||||||||
Current Assets | |||||||||
Cash | 294,000 | 311,640 | 342,804 | 373,656 | 75,000 | ||||
Accounts Receivable | 948,800 | 846,728 | 931,401 | 1,015,227 | 490,000 | ||||
Less: Allowance for Doubtful Accounts | 16,800 | 17,808 | 19,589 | 21,352 | 15,000 | ||||
Net Accounts Receivable | 932,000 | 828,920 | 911,812 | 993,875 | 475,000 | ||||
Merchandise Inventory | 601,856 | 637,967 | 701,764 | 764,923 | 334,000 | ||||
Office Supplies | 2,240 | 2,374 | 2,612 | 2,847 | 2,000 | ||||
Prepaid Insurance | 15,680 | 16,621 | 18,283 | 20,111 | 14,000 | ||||
Total Current Assets | 1,845,776 | 1,797,523 | 1,977,275 | 2,155,412 | 900,000 | ||||
Long-Term Assets | |||||||||
Land | 2,000,600 | 2,000,600 | 2,000,600 | 2,000,600 | 2,000,600 | ||||
Equipment & Furniture - Warehouse | 11,200 | 11,872 | 13,059 | 14,235 | 10,000 | ||||
Accumulated Depreciation - Equip &Furn. - Warehouse | 2,128 | 2,256 | 2,481 | 2,705 | 1,900 | ||||
Book Value: Equipment & Furniture -Warehouse | 9,072 | 9,616 | 10,578 | 11,530 | 8,100 | ||||
Equipment & Furniture - Office | 9,520 | 10,091 | 11,100 | 12,099 | 8,500 | ||||
Accumulated Depreciation - Equip &Furn. - Office | 1,792 | 1,900 | 2,089 | 2,278 | 1,600 | ||||
Book Value: Equipment & Furniture -Office | 7,728 | 8,192 | 9,011 | 9,822 | 6,900 | ||||
Total Long-Term Assets | 2,017,400 | 2,018,408 | 2,020,189 | 2,021,952 | 2,015,600 | ||||
TOTAL ASSETS | 3,863,176 | 3,815,931 | 3,997,464 | 4,177,364 | 2,915,600 | ||||
LIABILITIES | |||||||||
Current Liabilities | |||||||||
Accounts Payable | 812,432 | 861,178 | 947,296 | 978,338 | 948,600 | ||||
Wages Payable | 0 | 0 | 0 | 0 | 0 | ||||
Interest Payable | 0 | 0 | 0 | 0 | 0 | ||||
Dividends Payable | 0 | 0 | 0 | 0 | 0 | ||||
Unearned Rent | 0 | 0 | 0 | 0 | 0 | ||||
Total Current Liabilities | 812,432 | 861,178 | 947,296 | 978,338 | 948,600 | ||||
Long-Term Liabilities | |||||||||
Notes Payable | 0 | 0 | 0 | 0 | 0 | ||||
Bonds Payable | 0 | 0 | 0 | 0 | 0 | ||||
Mortgage (Warehouse) Payable | 124,000 | 131,440 | 144,584 | 157,597 | 200,000 | ||||
Total Long-Term Liablities | 124,000 | 131,440 | 144,584 | 157,597 | 200,000 | ||||
TOTAL LIABILITIES | 936,432 | 992,618 | 1,091,880 | 1,135,935 | 1,148,600 | ||||
STOCKHOLDER'S EQUITY | |||||||||
Paid-in Capital | |||||||||
Capital Stock | 65,000 | 65,000 | 65,000 | 65,000 | 60,000 | ||||
Additional Paid-in Capital | 1,545,000 | 1,545,000 | 1,545,000 | 1,545,000 | 1,341,000 | ||||
Retained Earnings | 1,316,744 | 1,213,313 | 1,295,584 | 1,431,429 | #REF! | ||||
Total Paid-in Capital & RetainedEarnings | 2,926,744 | 2,823,313 | 2,905,584 | 3,041,429 | #REF! | ||||
TOTAL LIABILITIES & CAPITAL | 3,863,176 | 3,815,931 | 3,997,464 | 4,177,364 | #REF! | ||||
TOTAL ASSETS | 3863176 | 3815930.56 | 3997463.616 | 4177364.17 | 2915600 | ||||
TOTAL LIAB & EQUITY | 3863176 | 3815930.92 | 3997464.092 | 4177363.81 | #REF! | ||||
VARIANCE | 0 | -0.36 | 0 | 0 | #REF! |
12/31/15 | 12/31/14 | 12/31/13 | INDUSTRY | ||||
Liquidity | |||||||
Current Ratio (One decimal place) | 2.1 | 2.1 | 2.2 | ||||
Current Assets | |||||||
Current Liabilities | |||||||
Acid Test Ratio (One decimal place) | 1.3 | 1.3 | 1.6 | ||||
Cash | |||||||
A/R (Net) | |||||||
Short Term Investments | |||||||
Current Liabilities | |||||||
Receivables Turnover (One decimalplace) | 10.2 | 9.5 | 10 | ||||
Net Credit Sales | |||||||
Beg A/R | |||||||
End A/R | |||||||
Avg. A/R | |||||||
Inventory Turnover (One decimalplace) | 11.4 | 10.4 | 9.5 | ||||
CGS | |||||||
Avg. Inventory | |||||||
Profitability | |||||||
Profit Margin (% with two decimalplaces) | 1.66% | 3.75% | 3.5% | ||||
Net Income | |||||||
Net Sales | |||||||
Asset Turnover (two decimal places) | 2.27 | 2.21 | 1.9 | ||||
Net Sales | |||||||
Beginning Assets | |||||||
Ending Assets | |||||||
Average Assets | |||||||
Return on Assets (% one decimalplace) | 3.8% | 8.3% | 10.5% | ||||
Net Income | |||||||
Avg. Assets | |||||||
Return on Common Shareholders' Equity | |||||||
(One decimal place) | 5.2% | 11.4% | 18.3% | ||||
Net Income | |||||||
Preferred Dividends | |||||||
Beginning Common Equity | |||||||
Ending Common Equity | |||||||
Avg. Common Shareholders' Equity | |||||||
Earnings per Share (EPS) (Two decimalplaces) | 2.27 | 5.33 | 3.05 | ||||
Net Income | |||||||
Preferred Dividends | |||||||
Weighted Avg. Common SharesOutstanding | |||||||
Price-Earnings (P/E ) Ratio (Two decimalplaces) | 14.98 | 5.93 | 14.8 | ||||
Market Price per Share of Stock | |||||||
Earnings per Share | |||||||
Payout Ratio (% One decimal place) | 10.9% | 4.4% | 15.0% | ||||
Cash Dividends | |||||||
Net Income | |||||||
Solvency Ratios | |||||||
Debt to Total Assets Ratio (% One decimalplace) | 26.0% | 27.3% | 42.2% | ||||
Total Debt | |||||||
Total Assets | |||||||
Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | |||||
Common Dividends | 19,200 | 16,130 | 15,000 | ||||
Weighted Average Common Shares | 65,000 | 65,000 | 63,750 | ||||
Market Price per Share | 35 | 34 | 31 |