In its closing financial statements for its first year in business, ABC Enterpri
ID: 2776649 • Letter: I
Question
In its closing financial statements for its first year in business, ABC Enterprises, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
Gross Profit= $1,558
Net Profit= $176
Total Assets= $5,320
ROE= 26.12%
ROA= 13.65%
Net Profit Margin= 26.23%
Gross Profit Margin= 56.29%
Sales to Asset Ratio= 0.81 times
Current Ratio= 1.33
Asset to Debt Ratio= 0.48
Interest coverage ratio= 9.74
Build simple income statement & balance sheet for company
Explanation / Answer
Income Statement
Balance Sheet Assets Liabilites and Equity Cash In Hand 242 Accounts Payable 700 Account Receivables 850 Short Term Notes Payable 740 Inventory 820 Long term Liabilities 1100 Net Fixed Assets 3408 Common Stodk 1160 Retained Earnings 1620 Total Assets 5320 Total Liabilities and Equity 5320