please answer me 1,2,3,4 Prepare answers on a separate sheet of paper for all 7
ID: 3197211 • Letter: P
Question
please answer me 1,2,3,4
Prepare answers on a separate sheet of paper for all 7 questions 1. From the following prepare a balance sheet for Roe Co. as of December 31, 2013. Salaries Pavable Accounts Roceivable Retained Earnings Common Stock Mortga 9,000 45,000 gage Note Payable Prepaid Rent 19.000 8,000 3,000 16,000 60,000 ccounts Payable Land Merchandise Inventory Building Using the balance sheet in question 1 calculate the following A current ratio B acid (quick) test 2. C- total debt to total assets D - return on equity (assume net income of $3.400) 3. As the accountant of Roe Hairdresser, you have been asked to prepare an income statemen following data for the month ended June 2014 Salon PromotionS 200 Telephonc Salary Electrical Salon Foes Earned 1,200 85 250 4. Complete using trend analyses for sales. (Round to nearest percent and use 2010 as the ba 2013 2012 2011 2010 Sales S158,000 S615,000 $280,000 S500,000Explanation / Answer
1.
Assets
Liabilities
Equity
2
a. Current Ratio: Current Asset / Current Liabilities
Current Asset = Cash + Inventory + Prepaid + Account Receivable = 40000
Current Liabilities = Mortgage + Account Payable + Salaries Payable = 70000
Ratio = 40000/70000 = 0.571 The company is not good at financial term
b. Acid Test = Cash + Account Receivable + Short term invest / Current Liabilities
= 3000 + 9000 + 12000 / 70000 = 0.3428 Not enough liquid assets to pay their current liabilities and should be treated with caution
c. Total debt to Total assets = Short term debt + Long term debt / Total Assets
= 70000/118000 = 0.593 Greater portion of a company's asset if funded by equity
D. Return on equity = Net Income / Equity = 5400 / 48000 = 11.25%
3.
Income Statement
For operating Expenses
Revenue
4.
When you see the behaviour of the data, you will see that through the years the sales increase (2011 - 2012 period) and decrease (2010 - 2011 and 2012 - 2013) with the highest peak of sales in 2012. So according with trend, probably in the future years, the sales will have the same pattern, but it is difficult to figure out the years when the sales will increase or decrease
Prepaid Rent 12000 Accounts Receivable 9000 Cash 3000 Inventory 16000 Land 18000 Building 60000Related Questions
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