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Week 1 Homework
Put the following data into an income statement and balance sheet, and use the resulting statements to calculate all of the ratios discussed in your Week 1 lessons. (See list below).
Income statement data:
Advertising	(8,000)
Bad Debts	(2,000)
COGS	(105,000)
Depreciation Expense	(12,000)
Electricity	(1,400)
Insurance	(1,200)
Interest Expense	(21,000)
Other operating revenue	8,000
Rent Expense	(28,500)
Sales	300,000
Wages & Salaries	(50,500)
Website marketing	(9,000)
Other data needed:
Tax Rate = 31%
Check your work: In order to verify you are putting the correct amounts
in the income statement, please use the following check figures:
Total revenue	$203,000
Total expenses	($112,600)
EBIT	$90,400
Balance sheet data:
Accounts Payable	12500
Accounts Receivable	18500
Accrued Salaries and Wages	12000
Accumulated depreciation	25500
Cash	17000
Current Portion of Long-Term Debt	16500
Deferred Income Tax	3000
Income Taxes Payable	2500
Inventory	35000
Long-term Debt	58000
Long-term Investments	23000
Owners' Investment	123100
Prepaid Expenses	5000
Property, Plant, and Equipment	175000
Retained Earnings	24000
Short-term Investments	10000
Short-term Loans	6400
Check your work: In order to verify you are putting the correct amounts
in the balance sheet, please use the following check figures:
Total assets	$258,000
Total current liabilities	$49,900
Total equity	$147,100
Market value data needed for ratio analysis:
Price per share = $27.15
Earnings per share = $2.20
Book value per share = $21.75

Asset Management Ratios

Inventory Turnover

= COGS / Average Inventory

COGS

Beg Inventory

Ending Inventory

DSO

= Accts Receivable / Avg Daily Sales

Accounts Receivable

Total Sales

Avg. daily sales

Fixed Asset Turnover

= Net Sales / Average Fixed Assets

Net Sales

Beg Fixed Assets

End Fixed Assets

Total Asset Turnover

= Net Sales / Average Total Assets

Net Sales

Beg Total Assets

End Total Assets

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