FINANCIAL_STATEMENT_ANALYSIS_-_RECONSTRUCTION_ACTIVITY.xlsx - Required Based on the given data reconstruct the balance sheet and the income statement of


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Required: Based on the given data, reconstruct the balance sheet and the income statement of FARA Compa Additional information: 1. Operating expenses ere 15% of net sales. 2. Acid-test ration as 1.3 : 1 3. Times interest earned was 6 times. 4. Gross Margin as 35% of net sales. 5. The age of receivables as 36 days. 6. The beginning accounts receivable was P160,000. Use 360-day year. 7. Inventory turnover was 4 times. The beginning inventory amounted to P250,000. 8. Total debt to stockholder's equity was 8: 1.
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any for the year 2004.
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FARA COMPANY BALANCE SHEET As of December 31, 2004 ASSETS Current assets: Cash P ? Marketable Securities 50,000 Accounts Receivable, net
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Unformatted text preview: ? Inventories ? P ? Noncurrent assets: Plant and Equipment, net ? Total assets P ? LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilties: P ? Noncurrent liabilities: Bonds Payable, 12.5% ? Total liabilities P ? Stockholder's equity: Common stock P500,000 Retained earnings 300,000 800,000 Total liabilities and stockholder's equity P ? FARA COMPANY BALANCE SHEET As of December 31, 2004 Net Sales P ? Cost of goods sold ? Gross margin on sales P 525,000 Operating expenses ? Operating income P ? Interest expense ? Net income before taxes P ? Income tax (32% tax rate) ? Net income P ?...
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