FIN101 Saudi Electronic University Net Working Capital Balance Sheet Assignment Questions Q1. From the information given below: (10 Marks) Prepare a bala
FIN101 Saudi Electronic University Net Working Capital Balance Sheet Assignment Questions
Q1. From the information given below: (10 Marks)
Prepare a balance sheet
Net working capital
Cash
100,000
Account receivables
72,000
Accounts payable
48,000
Short-term notes payable
35,000
Inventories
70,000
Gross fixed assets
1,750,000
Common stock
680,000
Other current assets
10,000
Accumulated depreciation
524,000
Long-term debt
350,000
Other assets
25,000
Retained earnings
?
Q2. (10 Marks)
Sales
$525,000
Cost of goods sold
$200,000
General and administrative expenses
$62,000
Depreciation expenses
8,000
Interest expense
12,000
Income taxes
97,200
From the information given above, prepare
(a) the income statement, and
(b) the common-sized income statement.
Q3. Prepare a statement of cash flows from the following list of items. (5 Marks)
Increase in inventories
22,000
Operating income
625,000
Dividends
55,000
Increase in accounts payables
92,500
Interest expense
118,000
Increase in common stock
22,000
Depreciation expense
48,000
Increase in accounts receivable
210,000
Increase in long-term debt
145,000
Increase in short-term notes payable
36,500
Increase in gross fixed assets
144,000
Increase in paid in capital
60,000
Income taxes
202,000
Beginning cash
700,000
Q4. Calculate the following ratios from the Balance Sheet and the Income Statement of Saudi Manufacturing Corporation given below: (5 Marks)
a.Current Ratio
b.Debt Ratio
c.Fixed asset turnover
d.Total asset turnover
Operating profit margin
Balance Sheet:
Cash
30,000
Acct/Rec
72,500
Inventories
50,000
Current assets
152,500
Net fixed assets
240,000
Total assets
392,500
Accts/Pay
44,500
Accrued expenses
31,000
Short-term N/P
9,500
Current liabilities
85,000
Long-term debt
110,000
Owner’s equity
197,500
Total liabilities and owners equity
392,500
Income Statement:
Net sales
450,000
COGS
220,000
Gross profit
230,000
Operating expenses
128,000
Net operating income
102,000
Interest expense
18,500
EBT
83,500
Income taxes
33,000
Net income
50,500 Assignment Questions
Q1. From the information given below: (10 Marks)
a. Prepare a balance sheet
b. Net working capital
Cash
Account receivables
Accounts payable
Short-term notes payable
Inventories
Gross fixed assets
Common stock
Other current assets
Accumulated depreciation
Long-term debt
Other assets
Retained earnings
Q2.
Sales
Cost of goods sold
General and administrative expenses
Depreciation
expenses
Interest expense
Income taxes
From the information given above, prepare
(a) the income statement, and
(b) the common-sized income statement.
100,000
72,000
48,000
35,000
70,000
1,750,000
680,000
10,000
524,000
350,000
25,000
?
(10 Marks)
$525,000
$200,000
$62,000
8,000
12,000
97,200
Q3. Prepare a statement of cash flows from the following list of items. (5 Marks)
Increase in
inventories
Operating income
Dividends
Increase in accounts payables
Interest expense
Increase in common stock
Depreciation expense
Increase in accounts receivable
Increase in long-term debt
Increase in short-term notes payable
Increase in gross fixed assets
Increase in paid in capital
Income taxes
Beginning cash
22,000
625,000
55,000
92,500
118,000
22,000
48,000
210,000
145,000
36,500
144,000
60,000
202,000
700,000
Q4. Calculate the following ratios from the Balance Sheet and the Income Statement of
Saudi Manufacturing Corporation given below: (5 Marks)
a. Current Ratio
b. Debt Ratio
c. Fixed asset turnover
d. Total asset turnover
e. Operating profit margin
Balance Sheet:
Cash
Acct/Rec
Inventories
Current assets
Net fixed assets
Total assets
Accts/Pay
Accrued expenses
Short-term N/P
Current liabilities
Long-term debt
Owner’s equity
Total liabilities and
owners equity
Income Statement:
Net sales
COGS
Gross profit
Operating expenses
Net operating
income
Interest expense
EBT
Income taxes
Net income
30,000
72,500
50,000
152,500
240,000
392,500
44,500
31,000
9,500
85,000
110,000
197,500
392,500
450,000
220,000
230,000
128,000
102,000
18,500
83,500
33,000
50,500
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