ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2014 ASSETS 2014 2013 2012 Current
ID: 2587584 • Letter: A
Question
ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2014 ASSETS 2014 2013 2012 Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets 501,992 335,272 15,174 251,874 $1,604,312 765,215 218,284) 2,151,243 434,215 302,514 505,321 231,100 1,473,150 735,531 (196,842) $2,011,839 375,141 241,764 310,885 136,388 $1,064,178 705,132 (175,400) $1,593,910 Property, plant, and equipment Accumulated depreciation TOTAL ASSETS LIABILITIES Current liabilities Accounts payable Accrued liabilities Income taxes payable Current portion of long-term debt Total current liabilities $248,494 122,192 10,645 42,200 $423,531 366,864 216,533 25,698 42,200 651,295 $322,156 215,474 22,349 42,200 602,179 Long-term liabilities Long-term debt 375,100 425,311 $848,842 400,311 $1,051,606 977,279 TOTAL LIABILITIES STOCKHOLDERS' EQUITY Common stock Additional paid-in capital Retained earnings $370,124 29,546 731 $1,302,401 $2,151,243 356,758 24,881 578,594 $960,233 $2,011,839 $320,841 21,910 273,880 616,631 1,593,910 Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITYExplanation / Answer
ABC Company Ratio Analysis Dec 31, 2014 12/31/14 12/31/13 Change % Change Liquidity Ratio Current Ratio - Current Assets / Current Liabilities Current Assets 1,604,312.00 1,473,150.00 Current Liabilities 423,531.00 651,295.00 Current Ratio 3.79 2.26 1.53 67.47% Quick Ratio = (Current Assets - Inventory) / Current Liabilities Current Assets 1604312 1473150 Less: Inventory 515,174.00 505,321.00 Quick Assets 1,089,138.00 967,829.00 Current Liabilities 423,531.00 651,295.00 Quick Ratio 2.57 1.49 1.09 73.05% Accounts Receivable Turnover (Sales / Avg. Acoounts Receivables) Sales 1,572,134.00 1,413,581.00 Accounts Receivable - Beginning 302,514.00 241,764.00 Accounts Receivable - Ending 335,272.00 302,514.00 Avg. Accounts Receivable 318,893.00 272,139.00 Accounts Receivable Turnover 4.93 5.19 (0.26) -5.09% Days Sales in Accounts Receivable (365 / Accounts Receivable Turnover) 74.04 70.27 3.77 5.36% Inventory Turnover (Cost of goods Sold / Avg. Inventory) Cost of Goods Sold 601,215.00 556,721.00 Inventory - Beginning 505,321.00 310,885.00 Inventory - Ending 515,174.00 505,321.00 Avg. Inventory 510,247.50 408,103.00 Inventory Turnover 1.18 1.36 (0.19) -13.63% Profitability / Performance Ratios: Profit Margin (Net Income / Sales) Net Income 324,137.00 304,714.00 Sales 1,572,134.00 1,413,581.00 Profit Margin 20.62% 21.56% -0.94% -4.35% Gross Profit Margin (Gross Profit / Sales) Gross Profit 970,919.00 856,860.00 Sales 1,572,134.00 1,413,581.00 Gross Profit Margin 61.76% 60.62% 1.14% 1.88% Earning per Share (Net Income /No. shares of Stock) Net Income 324,137.00 304,714.00 No. of Shares 370,124.00 356,758.00 Earning per Share 0.88 0.85 0.02 2.53% Assuming Par Valur of Share $1 Sales / Total Assets 0.73 0.70 0.03 4.01% Sales / Working Capital 1.33 1.72 (0.39) -22.59% Equity Position Ratio Owners Equity /Total Assets 0.61 0.48 0.13 26.84% Current Liabilities / Total Stockholders' Equity 0.33 0.68 (0.35) -52.06% Total Liabilities / Total Stockholders' Equity 0.39 0.52 (0.13) -24.51% ABC Company Income Statement For The Period Ended Dec 31, 2014 2014 2013 $ Change % Change Sales 1,572,134.00 1,413,581.00 158,553.00 11.22% Cost of Goods Sold 601,215.00 556,721.00 44,494.00 7.99% Gross Profit 970,919.00 856,860.00 114,059.00 13.31% Expenses Advertsing 55,153.00 50,531.00 4,622.00 9.15% Depreciation 21,442.00 21,442.00 - 0.00% Bad Debts 20,151.00 18,934.00 1,217.00 6.43% Legal 17,261.00 10,207.00 7,054.00 69.11% Miscellaneous 91,014.00 31,214.00 59,800.00 191.58% Rent 148,321.00 142,078.00 6,243.00 4.39% Repairs & Maintenance 14,315.00 13,642.00 673.00 4.93% Salaries & Wages 47,121.00 45,312.00 1,809.00 3.99% Utilities 15,912.00 15,643.00 269.00 1.72% Total Expenses 430,690.00 349,003.00 81,687.00 23.41% Net Income before Income Tax 540,229.00 507,857.00 32,372.00 6.37% Income Tax Expense 216,092.00 203,143.00 12,949.00 6.37% Net Income 324,137.00 304,714.00 19,423.00 6.37% ABC Company Balance Sheet As of Dec 31, 2014 2014 % of Total Assets 2013 % of Total Assets Current Assets Cash 501,992.00 23.33% 434,215.00 21.58% Accounts Receivable 335,272.00 15.59% 302,514.00 15.04% Inventory 515,174.00 23.95% 505,321.00 25.12% Prepaid Expenses 251,874.00 11.71% 231,100.00 11.49% Total Current Assets 1,604,312.00 74.58% 1,473,150.00 73.22% Property, Plant & Equipment 765,215.00 35.57% 735,531.00 36.56% Accumulated Depreciation (218,284.00) -10.15% (196,842.00) -9.78% Total Assets 2,151,243.00 100.00% 2,011,839.00 100.00% Liabilities Current Liabilities Accounts Payable 248,494.00 11.55% 366,864.00 18.24% Accrued Liabilities 122,192.00 5.68% 216,533.00 10.76% Income Tax Payable 10,645.00 0.49% 25,698.00 1.28% Current Portion of Long Term Debt 42,200.00 1.96% 42,200.00 2.10% Total Current Liabilities 423,531.00 19.69% 651,295.00 32.37% Long-term Liabilities Long-term Debt 425,311.00 19.77% 400,311.00 19.90% Total Liabilities 848,842.00 39.46% 1,051,606.00 52.27% Stockholders' Equity Common Stock 370,124.00 17.21% 356,758.00 17.73% Additional paid in Capital 29,546.00 1.37% 24,881.00 1.24% Retained Earnings 902,731.00 41.96% 578,594.00 28.76% Total Stockholders' Equity 1,302,401.00 60.54% 960,233.00 47.73% Total Liabilities & Stockholders' Equity 2,151,243.00 100.00% 2,011,839.00 100.00%