Tutorial 3: Financial Statements and Cash Flows Due date: 1 April

2021
Answers all the questions as given below.

3-3.
Balance Sheet
Description $ $
Assets
Current Asset:
Cash 50,000
Accounts Receivable 42,700
Inventories 40,000
Other current assets 5,000
Gross Current Asset 1,37,700
Gross Fixed Assets 12,80,000
-Accumulated depreciation (3,12,000)
Net Fixed Assets 9,68,000
Other Assets 15,000
Total Assets 11,20,700
Liabilities & Equity
Current Liabilities:
Accounts Payable 23,000
Short-term notes payable 10,500
Total Current Liabilities 33,500
Long term debt 2,00,000
Total Debt/Liabilities 2,33,500
Tutorial 3: Financial Statements and Cash Flows Due date: 1 April
2021
Answers all the questions as given below.
Equity:
Common Stock 4,90,000
Retained Earnings 3,97,200
(2,33,500+4,90,000)-11,20700
Total Liabilities and Equity 11,20,700

Net Working Capital=

Current assets–current liabilities
=1,37,700-33,500
=1,04,200

Debt Ratio=
total liabilities/ total assets
=2,33,500/11,20,700
=0.208
=20.8%

3-4.

Common-size Balance Sheet

Description $ $ % of Total
Assets
Assets
Current Asset:
Cash 30,000 2.6%
Accounts Receivable 63,800 5.5%
Inventories 66,000 5.7%
Gross Current Asset 1,59,800 13.8%
Gross Fixed Assets 10,61,000 91.5%
-Accumulated depreciation (86,000) 7.4%
Net Fixed Assets 9,75,000 84.1%
Other Assets 25,000 2.2%
Total Assets 11,59,800 100%
Liabilities & Equity
Current Liabilities:
Accounts Payable 52,500 4.5%
Short-term notes payable 11,000 0.9%
Total Current Liabilities 63,500 5.5%
Long term debt 2,10,000 18.1%
Total Debt/Liabilities 2,73,500 23.6%
Equity:
Common Stock 4,80,000 41.4%
Retained Earnings 4,06,300 35%
(2,73,500+4,80,000)-11,59,800
Total Liabilities and Equity 11,59,800 100%
Tutorial 3: Financial Statements and Cash Flows Due date: 1 April
2021
Answers all the questions as given below.

3-8.

Cash Flow Statement

Description $ $
Operating Activities:
Operating income 75
(-)Income Taxes (17)
(-)Interest expense (25)
Net income 33
Adjustments:
Depreciation expense 12
(-)Increase in inventories (30)
Increase in accounts payable 25
(-)Increase in accounts receivable (25)
Total adjustments to net income (18)
Cash flows from operating 15
activities
Investment Activities:
-Increase in gross fixed assets (23)
Cash flows from investing (23)
activities
Financing Activities:
Increase in common stock 20
(-)Dividends (15)
Cash flows from financing 5
activities:
Change in cash (3)
Beginning cash 20
Ending Cash 17