Exercise2 - Construct the balance sheet for the year 2006...

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Exercise 2 Financial Statements The following data is given: 2007 2006 Sales $150,500 $138,200 Short-Term Notes 18,700 20,100 Cost of Goods Sold 108,400 92,600 Fixed Expenses 7,600 7,000 Common Stock 40,500 40,500 15,500 13,400 Other Current Liabilities 8,400 8,600 Interest Expense 3,400 2,900 $10,500 $9,700 Long-Term Debt 32,000 29,800 Accounts Receivable 54,400 55,300 Accounts Payable $12,000 $10,700 Inventory 42,700 37,800 56,900 53,000 Depreciation Expense 2,300 2,250 Accumulated Depreciation 27,900 Retained Earnings 22,700 18,200 Assuming the tax rate is 30%.  Construct the income statement for the year 2006 and 2007
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Unformatted text preview: Construct the balance sheet for the year 2006 and 2007 Construct the statement of cash flow for the year 2007 Construct the common-size income statement and balance sheet From the common-size statement, what can you summarize about the firms total profitability in 2007 compared to 2006? From the common-size statement, what can you summarize about the firm debt and equity structure in 2007 compared to 2006? Note: Please keep this work because you need to use this exercise for the next chapter....
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