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    Financial Analysis: Using ratios and data, prepare an income statement, balance sheet

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    Financial reports for 20X3:

    Stock price $18.37
    Inventory balance $300000
    Expenses(excluding OGS) $1120000
    Shares outstanding 290000
    Average issue price of shares $5.00
    Gross margin 40%
    Interest rate 8%
    TIE ratio 8
    Inventory turnover 12X
    Current ratio 1.5
    Quick ratio .75
    Fixed asset turnover 1.5

    Q.
    Complete the following abbreviated financial statements and calculate per share ratios indicated. (Hint: Start by subtracting the formula for the quick ratio from that for the current ratio and equating that to the numerical difference.)

    Income Statement

    Revenue
    COGS
    GM
    Expense
    EBIT
    Interest
    EBT
    Tax
    EAT

    Balance Sheet

    Current assets
    Fixed assets
    Total assets

    Current liabilities
    Long-term debt
    Equity:
    Paid-in capital(Common stock + Paid-in excess)
    Retained earnings

    Total equity
    Total liabilities & equity

    Ratios

    Book value per share
    Market value per share

    © BrainMass Inc. brainmass.com June 3, 2020, 8:37 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/financial-analysis-using-ratios-and-data-prepare-an-income-statement-balance-sheet-145879

    Solution Preview

    See attached file.

    Computations:
    Inventory= Current Ratio- Quick Ratio
    300000= 1.25-.75
    Numerical difference for .5 = 300000
    For Current Assets =1.25= 300000*1.25/.5
    $750,000.00
    For Current Liabilities=.75= 300000*.75/.5
    $450,000.00

    Cost of Goods Sold= Inventory * Inventory turnover
    = 12* ...

    Solution Summary

    With good explanations and calculations, the problem is solved.

    $2.19

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