Financial Statements

Written Assignment 2

Answer all of the following questions/problems and submit them to your mentor in a Word document.

You should use a financial calculator and Excel to solve the problems.

Remember: You must export your table(s) from Excel to Word before submitting your work. Consult the Course Calendar for due dates.

Note: You will be able to use a financial calculator for your midterm exam, but Excel will not be available

Discuss the importance of financial statements and how they are used by businesses.
What is the basic format of the income statement and what is the relevance of the basic categories?
Cash flows for an organization come from operating activities and investment activities. Discuss the importance of each to the organization.
The Happy Auto Shop has the following annual information:

Gross Sales

 

$700,000

 

Net sales

 

$696,000

 

Gross profit

 

$448,000

What are the shop’s returns and allowances and cost of goods sold?

Construct a statement of financial position (balance sheet) for the Humperdink family using the following information:

cash

 

$50

 

Checking account

 

$2,500

 

student loan balance

 

$6,000

 

stocks and bonds

 

$2,600

 

savings account

 

$5,850

 

residence

 

$110,000

 

automobile

 

$12,000

 

savings account

 

$5,800

 

automobile loan balance

 

$12,000

 

401K retirement account

 

$15,000

 

furniture, clothing, jewelry

 

$8,000

 

credit card balance

 

$4,000

 

mortgage loan balance

 

$99,000

What is the purpose of financial statement analysis? How do the three types of financial statement analysis differ from each other and when is each used?
Samantha Knight is applying for a small-business loan. She provides the bank with the following information:

cash in checking accounts

 

$5,000

 

cash in savings

 

$10,350

 

home market value

 

$145,500

 

first mortgage on house

 

$25,000

 

home equity loan limit

 

$70,000

 

home equity loan

 

$10,000

 

automobile market value

 

$19,000

 

automobile loan outstanding

 

$15,000

 

credit card debt

 

$1,500

Calculate the debt-to-asset ratio.
Calculate the debt-to-equity ratio.
What percentage of Samantha’s assets is owned by others?
Given the profit loss (income statement) and balance sheet for Sam’s Sandwich Delivery (Table 4-8, page 121 of your textbook), answer the following:
Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.
Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.
Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.
Perform a vertical analysis of the income statement.
Perform a vertical analysis of the balance sheet.
Based on your analysis, would you consider investing in Sam’s Sandwich Delivery?

For more information on Financial Statements read this: https://en.wikipedia.org/wiki/Financial_statement

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Australia Assessments has gained an international reputation of being the leading website in custom assignment writing services. Once you give us the instructions of your paper through the order form, we will complete the rest.

Essays

Essay Writing Services

As we work towards providing the best custom assignment services, our company provides assignment services for any type of academic essay. We will help you develop professionally written essays that are rich in content and free from plagiarism.

Admissions

Admission and Business Papers

Our skilled team of professional writers will ensure that we help you craft a remarkable admission essay for your desired Master's program in your institution of choice. We won't stop there. Once you enter the job market, we will be available to secure you a position at your desired worksite by creating an outstanding portfolio or resume.

Editing

Editing and Proofreading

Our editorial team is always available for all editing and proofreading services. They check completed papers by our writers and also provide professional opinions to papers completed by our clients.

Coursework

Technical papers

We harbor professional academic writers with different qualifications in diverse academic fields. As such, we are capable of handling both simple and technical papers. Ensure that you provide us with correct and complete instructions in the order form.