chap5 - 1,600 Prepaid Rent 4,800 Sales Supplies 1280 Office...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
P2 2008 2007 Net Sales 525,932 475,264 Cost of Goods Sold 234,948 171,850 Gross Margin 290,984 303,414 Operating Expenses Selling Expenses 161,692 150,700 Gen. Admin. Costs 62,866 42,086 Total Operating Exp’s. 225,558 192,786 Income from Operations 65426 110628 Other Rev’s and Exp. Interest income 800 700 Less interest expense 3600 850 Excess of other exp. Over rev. 2800 150 Net Income 62626 110,478 Income from operations decreased from 07’ to 08’ because administration costs went up and so did selling expenses and also cost of good sold did not go up proportionally with net sales. P3 Assets Current Assets Cash and cash equiv. 31,000 Short Term Invest. 33,000 Accounts Rec. 276,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Inventories 145,000 Prepaid Insur.
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1,600 Prepaid Rent 4,800 Sales Supplies 1280 Office Supplies 440 Other 4,000 Total Current Assets 497,120 PPE 63,600 Investments 53,280 Total Assets. 610000 Liabilities Current Liabilities Accounts Payable 114,600 Accrued and Other 28,400 Salaries Payable 5,200 Interest payable 840 Total Current Liabilities 149,040 Long term Debt 80,000 Kissel. Capital 394,960 Total Liabilities 624,000 Current Ratio= .97 Debt to equity= 1.58 As a user of this type of balance sheet I would want to know both of these because it is basically telling you how the company is doing, in this case the company is losing money....
View Full Document

Page1 / 3

chap5 - 1,600 Prepaid Rent 4,800 Sales Supplies 1280 Office...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online