FIN101 Saudi Electronic University Net Working Capital Balance Sheet

Assignment Questions

Q1. From the information given below: (10 Marks)

  • Prepare a balance sheet
  • Net working capital

Cash

100,000

Account receivables

72,000

Accounts payable

48,000

Short-term notes payable

35,000

Inventories

70,000

Gross fixed assets

1,750,000

Common stock

680,000

Other current assets

10,000

Accumulated depreciation

524,000

Long-term debt

350,000

Other assets

25,000

Retained earnings

?

Q2. (10 Marks)

Sales

$525,000

Cost of goods sold

$200,000

General and administrative expenses

$62,000

Depreciation expenses

8,000

Interest expense

12,000

Income taxes

97,200

From the information given above, prepare

(a) the income statement, and

(b) the common-sized income statement.

Q3. Prepare a statement of cash flows from the following list of items. (5 Marks)

Increase in inventories

22,000

Operating income

625,000

Dividends

55,000

Increase in accounts payables

92,500

Interest expense

118,000

Increase in common stock

22,000

Depreciation expense

48,000

Increase in accounts receivable

210,000

Increase in long-term debt

145,000

Increase in short-term notes payable

36,500

Increase in gross fixed assets

144,000

Increase in paid in capital

60,000

Income taxes

202,000

Beginning cash

700,000

Q4. Calculate the following ratios from the Balance Sheet and the Income Statement of Saudi Manufacturing Corporation given below: (5 Marks)

a.Current Ratio

b.Debt Ratio

c.Fixed asset turnover

d.Total asset turnover

  • Operating profit margin


Balance Sheet:

Cash

30,000

Acct/Rec

72,500

Inventories

50,000

Current assets

152,500

Net fixed assets

240,000

Total assets

392,500

Accts/Pay

44,500

Accrued expenses

31,000

Short-term N/P

9,500

Current liabilities

85,000

Long-term debt

110,000

Owner’s equity

197,500

Total liabilities and owners equity

392,500

Income Statement:

Net sales

450,000

COGS

220,000

Gross profit

230,000

Operating expenses

128,000

Net operating income

102,000

Interest expense

18,500

EBT

83,500

Income taxes

33,000

Net income

50,500

 
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