Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 84 views

    Financial Statement Analysis Group Exercise: Instructions

    Uploaded by

    MARY ACOSTA
    BANABA Company provided financial statement information for 2015 including various ratios. The missing information from BANABA's 2015 comparative balance sheet and income statement is to be filled in using the provided ratios and financial information. This includes accounts receivable, inventory, total assets, accounts payable, bonds payable, total liabilities/equity, depreciation expense, total expenses, income before taxes, and net income.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Financial Statement Analysis Group Exercise: Instructions

    Uploaded by

    MARY ACOSTA
    84 views1 page
    BANABA Company provided financial statement information for 2015 including various ratios. The missing information from BANABA's 2015 comparative balance sheet and income statement is to be filled in using the provided ratios and financial information. This includes accounts receivable, inventory, total assets, accounts payable, bonds payable, total liabilities/equity, depreciation expense, total expenses, income before taxes, and net income.

    Original Title

    M2 PS FINMAN.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    BANABA Company provided financial statement information for 2015 including various ratios. The missing information from BANABA's 2015 comparative balance sheet and income statement is to be filled in using the provided ratios and financial information. This includes accounts receivable, inventory, total assets, accounts payable, bonds payable, total liabilities/equity, depreciation expense, total expenses, income before taxes, and net income.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    84 views1 page

    Financial Statement Analysis Group Exercise: Instructions

    Uploaded by

    MARY ACOSTA
    BANABA Company provided financial statement information for 2015 including various ratios. The missing information from BANABA's 2015 comparative balance sheet and income statement is to be filled in using the provided ratios and financial information. This includes accounts receivable, inventory, total assets, accounts payable, bonds payable, total liabilities/equity, depreciation expense, total expenses, income before taxes, and net income.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    MODULE 1

    FINANCIAL STATEMENT ANALYSIS

    GROUP EXERCISE

    The following ratios have been computed for BANABA Company for 2015.
    Profit margin 12.5%
    Times interest earned 7 times
    Receivables turnover 4 times
    Acid-test ratio 2:1
    Current ratio 3:1
    Debt to total assets ratio 20%

    BANABA Company’s 2015 financial statements with missing information follow:

    BANABA COMPANY
    Comparative Balance Sheet
    December 31,
    ——————————————————————————————————————————
    —
    Assets 2015 2014
    Cash.......................................................................................... P 30,000 P 45,000
    Short-term Investments............................................................. 10,000 25,000
    Accounts receivable (net).......................................................... ? (1) 40,000
    Inventory.................................................................................... ? (2) 50,000
    Property, plant, and equipment (net)......................................... 200,000 160,000
    Total assets........................................................................ P ? (3) P320,000

    Liabilities and shareholders' equity


    Accounts payable...................................................................... P ? (4) P 30,000
    Short-term notes payable.......................................................... 40,000 35,000
    Bonds payable........................................................................... ? (5) 20,000
    Ordinary share........................................................................... 220,000 200,000
    Retained earnings..................................................................... 60,000 35,000
    Total liabilities and shareholders' equity............................. P ? (6) P320,000

    BANABA COMPANY
    Income Statement
    For the Year Ended December 31, 2015
    ——————————————————————————————————————————
    —
    Net sales................................................................................... P200,000
    Cost of goods sold..................................................................... 75,000
    Gross profit................................................................................ 125,000
    Expenses:
    Depreciation expense.......................................................... P ? (7)
    Interest expense.................................................................. 5,000
    Selling expenses.................................................................. 8,000
    Administrative expenses...................................................... 12,000
    Total expenses............................................................... ? (8)
    Income before income taxes...................................................... ? (9)
    Income tax expense............................................................. ? (10)
    Net income................................................................................ P ? (11)

    Instructions
    Use the above ratios and information from the BANABA Company financial statements to fill in
    the missing information on the financial statements. Follow the sequence indicated. Show
    computations that support your answers.

    You might also like