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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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