Description
Use the provided Excel template to submit your responses to each of the study problems from the textbook below: 3-13, p. 72. Review of financial statements 3-15, p. 73. Analyzing the cash flow statement 4-25, p. 116. Calculating financial ratios Each question has a corresponding worksheet (look for the tab along the bottom of the workbook). The cells can be adjusted, added, or removed as necessary.
Worksheet will be attached, it's not alot to do I just dont understand it
Explanation & Answer
Attached.
Problem 3-13
Warner Company Balance Sheet
Current Assets
Inventory
Accounts Receivable
Cash
Warner Company Income Statement
99,300
167,500
225,000
Long Term (fixed) assets
Building and equipment
Accumulated depreciation
895,000
-263,000
Current Liabilities
Accounts Payable
Accrued expenses
Taxes Payable
102,000
7,900
53,000
Sales
Less: Cost of Goods sold
Gross Profit
Less: Expenses
Depreciation expense
General and administrative expense
Interest expense
Net Income before tax
Taxes
Net Income
Long-term Liabilities
Long term debt
Notes payable
334,000
75,000
Owners Equity
Common Stock
Retained Earnings
289,000
262,900
Total liabilities and equity
Total liabilities and equity
1,123,800
Q. What can you say about the firm’s financial condition based on these financial
statements?
Furthermore, it appears the company made a sound finance decision to fund long terms assests with long term liabilities. From the
financial statement, the company is in a strong condition because its positive retained earnings are positive. Furthermore, it is able to
generate positive profits and meets its short term obligations comfortably. It has a positive current ratio of 3 implying that the
comapany has a positive liguidity condition. Finally, the company invested in long term liabilities indicating that indeed it has a good
financial position.
Q. Using the CSU Online Library find one article that discuses financial statements, cash flow, or ratio analysis. Briefly
summarize the key points of the article as it relates to this unit. You may use any of the da...
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