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    Financial Analysis of the Giovanni Company

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    Can you tell me the what the ratios would be for the return on assets, debt ratio, profit margin ratio, and current ratio for the attached problem? Also, can you provide me the correct formulas for them? I would like for you to prepare the financial statements as well.

    The adjusted trial balance for Giovanni Co. as of December 31, 2011, follows:

    Giovanni Co.
    Adjusted Trial Balance
    December 31, 2011

    No. Account Title Debit Credit
    101 Cash $6,400
    104 Short-term investments 10,200
    126 Supplies 3,600
    128 Prepaid insurance 800
    167 Equipment 18,000
    168 Accumulated depreciation-Equipment $3,000
    173 Building 90,000
    174 Accumulated depreciation-Building 9,000
    183 Land 28,500
    201 Accounts payable 2,500
    203 Interest payable 1,400
    208 Rent payable 200
    210 Wages payable 1,180
    213 Property taxes payable 2,330
    233 Unearned professional fees 650
    251 Long-term notes payable 32,000
    301 J. Giovanni, Capital 91,800
    302 J. Giovanni, Withdrawals 6,000
    401 Professional fees earned 47,000
    406 Rent earned 3,600
    407 Dividends earned 500
    409 Interest earned 1,120
    606 Depreciation expense-Building 2,000
    612 Depreciation expense-Equipment 1,000
    623 Wages expense 17,500
    633 Interest expense 1,200
    637 Insurance expense 1,425
    640 Rent expense 1,800
    652 Supplies expense 900
    682 Postage expense 310
    683 Property taxes expense 3,825
    684 Repairs expense 579
    688 Telephone expense 421
    690 Utilities expense 1,820
    Totals $196,280 $196,280

    J. Giovanni invested $30,000 cash in the business during year 2011 (the December 31, 2010, credit balance of the J. Giovanni, Capital account was $61,800). Giovanni Company is required to make a $6,400 payment on its long-term notes payable during 2012.

    1. Prepare the income statement and the statement of owner's equity for the calendar year 2011 and the classified balance sheet at December 31, 2011.

    2. Prepare necessary closing entries at December 31, 2011.

    3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets at December 31, 2010, was $150,000), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio.

    *Check: (1) Total assets (12/31/2011), $145,500; Net income, $19,440

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    https://brainmass.com/business/financial-statements/408610

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    Can you tell me the what the ratios would be for the return on assets, debt ratio, profit margin ratio, and current ratio for the attached problem? Also, can you provide me the correct formulas for them? I would like for you to prepare the financial statements as well.

    The adjusted trial balance for Giovanni Co. as of December 31, 2011, follows:

    Giovanni Co.
    Adjusted Trial Balance
    December 31, 2011

    No. Account Title Debit Credit
    101 Cash $6,400
    104 Short-term investments 10,200
    126 Supplies 3,600
    128 Prepaid insurance 800
    167 Equipment 18,000
    168 Accumulated depreciation-Equipment $3,000
    173 Building 90,000
    174 Accumulated depreciation-Building 9,000
    183 Land 28,500
    201 Accounts payable 2,500
    203 Interest payable 1,400
    208 Rent payable 200
    210 Wages payable 1,180
    213 Property taxes payable 2,330
    233 Unearned professional fees 650
    251 Long-term notes payable 32,000
    301 J. Giovanni, Capital 91,800
    302 J. Giovanni, Withdrawals 6,000
    401 Professional fees earned 47,000
    406 Rent earned 3,600
    407 Dividends earned 500
    409 Interest earned 1,120
    606 Depreciation expense-Building 2,000
    612 Depreciation expense-Equipment 1,000
    623 Wages expense 17,500
    633 Interest expense 1,200
    637 Insurance expense 1,425
    640 Rent expense 1,800
    652 Supplies expense 900
    682 Postage expense 310
    683 Property taxes expense 3,825
    684 Repairs expense 579
    688 Telephone expense 421
    690 Utilities expense 1,820
    Totals $196,280 $196,280

    J. Giovanni invested $30,000 cash in the business during year 2011 (the December 31, 2010, credit balance of the J. Giovanni, Capital account was $61,800). Giovanni Company is required to make a $6,400 payment on its long-term notes payable during 2012.

    1. Prepare the income statement and the statement of owner's equity for the calendar year 2011 and the classified balance sheet at December 31, 2011.

    2. Prepare necessary closing entries at December 31, 2011.

    3. Use the information in the financial statements to calculate these ratios: (a) return on assets (total assets at December 31, 2010, was $150,000), (b) debt ratio, (c) profit margin ratio (use total revenues as the denominator), and (d) current ratio.

    *Check: (1) Total assets (12/31/2011), $145,500; Net income, $19,440

    $2.49

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