Show all of your work. Assets Liabilities and Owner’s Equity A/P $60,000 LT Debt 100,000 Total Debt 160,000 CS, par 2,000 PIC 50,000 R/E 50,000 Total Equity $102,000 Total Liabilities and Owners Equity $262,000 Cash $1,000 A/R 6,500 Inventory 62,500 Prepaids 12,000 Fixed...

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Accounting

Show all of your work.
Assets Liabilities and Owner’sEquity
A/P
$60,000
LT Debt
100,000
Total Debt
160,000
CS, par
2,000
PIC
50,000
R/E
50,000
Total Equity
$102,000
Total Liabilities and Owners Equity
$262,000
Cash
$1,000
A/R
6,500
Inventory
62,500
Prepaids
12,000
Fixed Assets
250,000
Accum Depreciation
(70,000)
Total Assets
$262,000
Sales
$800,000
COGS
370.000
Gross Profit
430,000
Operating Exp.
-170,000
Depreciation
-10,000
EBIT
250,000
Interest
-10,000
EBT
240,000
Taxes
-80,000
Net Income
$160,000
Prepare a financial analysisof this company (using ratios and your rationale) and comment onits status and performance in the space below. Use another page ifyou need more room. Explain what the ratios depictabout the financial status of the company.

Answer & Explanation Solved by verified expert

3.8 Ratings (661 Votes)

Liquidity Ratios Current Ratio Current Rtaio Current Liabilities 1000 6500 62500 12000 60000 137 Acid Test ratio Quick Assets Current Liabilities 1000 6500 60000 0125 Cash Ratio Cash Total Liabilities 1000 160000 000625 Working See Answer

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A/P	$60,000
LT Debt	100,000
Total Debt	160,000
CS, par	2,000
PIC	50,000
R/E	50,000
Total Equity	$102,000
Total Liabilities and Owners Equity	$262,000

Cash	$1,000
A/R	6,500
Inventory	62,500
Prepaids	12,000
Fixed Assets	250,000
Accum Depreciation	(70,000)
Total Assets	$262,000

Sales	$800,000
COGS	370.000
Gross Profit	430,000
Operating Exp.	-170,000
Depreciation	-10,000
EBIT	250,000
Interest	-10,000
EBT	240,000
Taxes	-80,000
Net Income	$160,000