Apple Blossom - Trial Balance Comparison

Apple Blossom - Trial Balance Comparison - 475,000 475,000...

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APPlE BLOSSOM COLOGNE COMPANY 12/31/2003 Per Audit Per Books Dollar Percent 12/31/2002 12/31/2003 Change Change Possible reason for the noticable change in account: Assets: 102 Cash - Second National Bank 5,918 36,968 31,050 625% greater Apple Blossom had to find other financial resources for their products or to pay off their liabilities. 111 Prepaid Rent 5,000 1,250 3,750 25% It looks like Apple Blossom was trying to get more financing and didn't have the money for prepaid expense 115 Investment in Securities 474,518 223,033 251,485 213% Apple Blossom didn't have money to invest 230 Machinery and Equipment 540,845 1,006,045 465,200 186% It looks like Apple Blossom was looking for financing to expand their business liabilities: 307 Federal Income Tax Payable 63,772 25,000 38,772 39% 308 Notes Payable - short term 125,000 0 125,000 0% In 2002 Apple Blossom paid off all of their notes payable 401 Notes Payable - long term
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Unformatted text preview: 475,000 475,000 unlimited The Notes Payable they had in 2002 was all being spent that fiscal year Equity: 601 Retained earnings 272,435 529,683 257,248 194% With all the cash they received from the banks their Retained Earnings increased Operating Expense: 826 Advertising Expense 12,714 44,934 32,220 353% They are trying to broaden their market base, which also goes on my idea of them trying to expand 831 Professional Fees 13,347 37,140 23,793 278% They are probably being more active in contracts or another activity which would require a professional A/R turnover = (Net Credit Sales)/(Net Trade Accounts Receivable) = 4,239,572/212,705 = 19.93 Inventory Turnover = Cost of Goods Sold/inventory = 1,742,503/719,647 = 2.42 Assert Turnover = Net Credit Sales/total assets = 4,239,572/3,275,915 = 1.29 Gross Profit Ratio = Gross Profit/Sales = 2,497,069/4,272,623 = .58...
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This note was uploaded on 04/26/2010 for the course ACC 639 taught by Professor Mccarthy during the Spring '10 term at St. Johns Duplicate.

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