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Background information and questions

Rearrange this data into the Balance Sheet and P&L statement below.

Place the data into these financial statements:

Buildings	20,000
Mortgage	1,500
Cash	3,000
Accounts Payable	1,500
Short Term Loan	850
Accounts Receivable	650
Machinery & Equipment	2,500
Inventory	2,369
Long Term Loan	5,500
SG&A	3,000
Sales	10,000
Depreciation	300
Cost of Goods	3,200
Interest Expense	100
Taxes	400

Note for the financial statements below:

(The calculations that need to be made are noted in BOLD on the statements)

On the P&L Net Income must be calculated.

On the Balance Sheet Shareholders' Equity, Total Current Assets & Fixed Assets, Total Current and Total Long Term Liabilities & Total Assets and Total Liabilities & Equity must be calculated.

Use these answers to complete Answer Sheet for Review Test B in the Item below.

You will also use these numbers to calculate the financial ratios in the online review test/assignment.

BALANCE SHEET
Cash		Accounts Payable
Accounts Receivable		Short Term Loan
Inventory		Current Liabilities
Current Assets		Mortgage
Buildings		Long Term Loan
Machinery & Equipment		Long Term Liabilities
Fixed Assets
		Shareholders' Equity
Total Assets		Total Liabilities & Equity

P&L (aka Income Statement)
Sales
Cosft of Goods
Gross Margin (Gross Profit)
SG&A
Depreciation expenses
Operating Profit
Interest expense
Taxes
Net Income

Questions to answer (the same questions you will encounter when you open up your Assignment Manager (for P&L) to turn it in)

Question 1 7 points What is the value of NET INCOME?

Question 2 5 points What is the value of CURRENT ASSETS?

Question 3 5 points What is the value of FIXED ASSETS?

Question 4 5 points What is the value of CURRENT LIABILITIES?

Question 5 5 points What is the value of LONG TERM LIABILITIES?

Question 6 5 points What is the value of SHAREHOLDERS' EQUITY?

Question 7 5 points What is the value of TOTAL LIABILITIES & EQUITY?

Question 8 4 points Using what you calculated so far what is the CURRENT RATIO?

Question 9 4 points What is the QUICK or ACID TEST RATIO?

Question 10 4 points What is the TOTAL DEBT RATIO?

Question 11 4 points What is the LONG TERM DEBT RATIO?

Question 12 4 points What is the INVENTORY TURNOVER RATIO?

Question 13 6 points What are the DAYS OF SALES IN RECEIVABLES?

Question 14 4 points What is the value of NET WORKING CAPITAL?

Question 15 4 points What is TOTAL ASSET TURNOVER?

Question 16 4 points What is this firm's RETURN ON SALES (ROS)?

Question 17 4 points What is the firm's RETURN ON ASSETS?

Question 18 4 points What is this firm's RETURN ON EQUITY?

Question 19 9 points As a result of your analyses do you believe this is a firm that will stay in business? Please look at your results for all ratios in this case along with the ratio interpretation sheet I showed you in class. Then, simply answer YES or NO.

Question 20 8 points From the limited amount of data and analysis is this is a "reasonably well run company" that is managing its finanances well? Answer YES or NO.

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