Need help with understanding how to calculate these from balance sheet info. Tha
ID: 2754016 • Letter: N
Question
Need help with understanding how to calculate these from balance sheet info. Thank you!
USE THE FINANCIAL DATA BELOW TO ANSWER QUESTIONS2-8.
Category
2012
2013
Accounts payable
300
750
Accounts receivable
900
825
Accruals
450
300
Cash
1,500
1,815
Common Stock
1,200
1,500
COGS
1,050
1,200
Depreciation expense
???
75
Gross fixed assets
2,250
2,700
Interest expense
120
150
Inventories
750
???
Long-term debt
1,500
1,650
Net fixed assets
1,875
2,250
Notes payable
825
715
Operating expenses (excl. depr.)
225
300
Retained earnings
750
1,125
Sales
1,950
2,350
Taxes
90
120
The 2013entry for inventory is $______.
1,075
1,100
1,125
1,150
1,175
The entry for taxes a common-sized income statement in 2013 was _____%.
5.11
5.33
5.55
5.77
5.99
The gross profit margin in 2013was ______%,
42.23
44.50
46.67
48.94
51.01
The cash flow from operations in 2013 was $____.
450
480
510
555
585
The cash flow from financing in 2013 was $______.
210
240
285
320
350
The information below is from RFG’s financial statements. RFG’s depreciation expense for 2013 was $800. Gross fixed assets for 2013 were $____.
2012
2013
Gross fixed assets
10,000
?/???
Net fixed assets
7,600
8,100
11,100
11,200
11,300
11,400
11,500
Category
2012
2013
Accounts payable
300
750
Accounts receivable
900
825
Accruals
450
300
Cash
1,500
1,815
Common Stock
1,200
1,500
COGS
1,050
1,200
Depreciation expense
???
75
Gross fixed assets
2,250
2,700
Interest expense
120
150
Inventories
750
???
Long-term debt
1,500
1,650
Net fixed assets
1,875
2,250
Notes payable
825
715
Operating expenses (excl. depr.)
225
300
Retained earnings
750
1,125
Sales
1,950
2,350
Taxes
90
120
Explanation / Answer
1)The 2013entry for inventory is $1075. (i.e. 2350-375-150-300-1200=325+750=1075)
2)The entry for taxes a common-sized income statement in 2013 was 5.11%. (i.e.120/2350*100)
3)The gross profit margin in 2013was 48.94%. [i.e. (2350-1200)/2350*100]
4)The cash flow from operations in 2013 was $940.
5)The cash flow from financing in 2013 was $450. (i.e. $300 + $150)
6)RFG’s depreciation expense for 2013 was $800. Gross fixed assets for 2013 were $11,300.
[i.e. addition to fixed assets = 8100 - (7600-800)= $1300, G Assets= $10,000+1300]
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