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  • Double G Western Wear

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    Nandini Ray
    100 views5 pages
    1) Double G Western Wear's financial statements for 2007 show sales of $624,000 with a net profit of $38,078. 2) Assets include a new truck with a net book value of $19,867, lease improvements of $10,580, and current assets of $57,951 including cash, inventory, and prepaid rent. 3) Equity consists of share capital of $30,000 and retained earnings of $41,212, with total liabilities of $18,720 including a loan and income taxes payable.

    Original Description:

    Double G wear

    Original Title

    Double G-2

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    1) Double G Western Wear's financial statements for 2007 show sales of $624,000 with a net profit of $38,078. 2) Assets include a new truck with a net book value of $19,867, lease improvements of $10,580, and current assets of $57,951 including cash, inventory, and prepaid rent. 3) Equity consists of share capital of $30,000 and retained earnings of $41,212, with total liabilities of $18,720 including a loan and income taxes payable.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    100 views5 pages

    Double G Western Wear

    Uploaded by

    Nandini Ray
    1) Double G Western Wear's financial statements for 2007 show sales of $624,000 with a net profit of $38,078. 2) Assets include a new truck with a net book value of $19,867, lease improvements of $10,580, and current assets of $57,951 including cash, inventory, and prepaid rent. 3) Equity consists of share capital of $30,000 and retained earnings of $41,212, with total liabilities of $18,720 including a loan and income taxes payable.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Double G western wear

    Dec 31, 2007

    cash & security Prepaid Lease


    Share cap old Truck new truck improvement
    bank deposit rent
    s

    1 30000 6280 5000 3000 5000 13800


    1 624000
    2 -29822
    3
    4 -72000
    5 -60000
    6 -1300
    7
    8 -198654
    9 -228000
    10 -20000 -5000 24833
    11
    12 -553
    13 -5000
    Sum 30000 14951 0 24833 3000 5000 13800
    equity asset asset asset asset asset asset

    write all the assumptions taken

    old truck New truck


    cost 5000 cost
    acc depn 167 acc depn
    book val 4833
    Acc depn
    Accrued interest on lease Acc depn on old Acc depn on
    cash register Inventory Loan
    expenses payable improve truck new truck
    ments
    2000 5000 16400 12000 100 460 167

    2760

    -100
    -180054
    198654

    -167 4967

    -5000
    2000 0 35000 12000 0 3220 0 4967
    asset liability asset liability liability asset asset asset

    420126 cogs 180054


    180054

    assume truck was exchanged on 1st of jan

    24833
    4967
    Acc depn Op credit
    on cash Sales Depn COGS RE Salary rent Interest card
    expenses
    register charges

    66.66667 3134
    624000
    -23820 6002
    400 3160
    72000
    60000
    1200
    180054

    228000
    4967

    466.6667 600180 8127 180054 3134 72000 60000 1200 228000 6002
    asset income expense expense equity expense expense expense expense expense

    old truck
    depn
    book value
    new truck
    no depn on new truck since
    Income statement for 2007
    previous
    years
    Income
    taxes
    payable
    553 Sales 600180
    COGS 180054
    gross profit 420126

    Expense
    Salary 72000
    rent 60000

    op expenses 228000
    interest 1200
    credit card charges 6002
    depn 8127
    -553 375329

    0 PBT 44797
    liability Tax 6720
    PAT 38078

    5000
    1167
    3833
    23833
    no depn on new truck since acquired on end of year
    Balance statement for 31 Dec 2007

    Assets

    Non current assets


    New Truck 24833
    Acc depn 4967
    Net 19867

    Lease improvements 13800


    Acc depn 3220
    Net 10580

    Cash register 2000


    Acc depn 467
    Net 1533
    31980
    Current assets
    cash & bank 14951
    security deposit 3000
    prepaid rent 5000
    Inventory 35000
    57951
    Total assets 89931

    Equity & liabilities


    Equity & liabilities
    Share capital 30000
    RE 41212
    71212
    Liability
    Loan 12000
    Interest payable 0
    accrued expenses 0
    Taxes payable 6720
    18720
    Total equity & liability 89931

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