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F.A - 2: Basic Test Bank For Finance

South East Inc. provided financial reports for 2008 and 2009 including balance sheets and an income statement. The balance sheets showed the company had total assets of $290,328 in 2008 and $321,075 in 2009, with current assets, fixed assets, current liabilities and owners' equity increasing between the two years. The income statement for 2009 showed the company had net income of $33,775 after revenues of $280,000, costs of $210,000 and expenses including depreciation, interest and taxes.

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78 views

F.A - 2: Basic Test Bank For Finance

South East Inc. provided financial reports for 2008 and 2009 including balance sheets and an income statement. The balance sheets showed the company had total assets of $290,328 in 2008 and $321,075 in 2009, with current assets, fixed assets, current liabilities and owners' equity increasing between the two years. The income statement for 2009 showed the company had net income of $33,775 after revenues of $280,000, costs of $210,000 and expenses including depreciation, interest and taxes.

Uploaded by

RAsel FaRuque
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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FIN254 Assignment#2 (Based on Chapter 3)

Financial reports of South East Inc. for the year 2008 and 2009 are as follows. The amounts are in thousand taka.

South East Inc. 2008 and 2009 Balance Sheets


Assets Cash %&' In)entory Total current assets Fi+ed assets Total assets: L a! l t es " #$ne%s& E'u t(: Current lia,ilities%ccounts .aya,le /otes .aya,le 0ther Total Currents lia,ilities 12T de,t 0wners4 e5uityCommon stock and pain2in surplus 'etained earnin6s Total Total L a! l t es " #$ne%s& E'u t( 2008 2!"8#0 !!"(!# 2("08* $#"2#0 2(*"0#8 $290,328 !9"(20 !0"000 9"#*( (8"9#( 3$"000 2$"000 !$!"(#$ !3#"(#$ $290,328 2009 22"0$0 !("8$0 2*"#$0 #0"$$0 2#0"$2$ $321,075 22"8$0 9"000 !!"(8$ *("2($ 8$"000 2$"000 !#3"8*0 !92"8*0 $321,075

South East Inc. 2009 Inco)e State)ent


Sales Cost of 6oods sold 7epreciation Earnin6s ,efore income and ta+es Interest paid Ta+a,le income Ta+es 8($9: (0$"8(0 2!0"9($ 2#"8$0 #8"0*$ !!"9(0 $#"!!$ !9"#*0

*et Inco)e
7i)idends %ddition to retained earnin6s-

$3+,,75
20"000 !#"*3$

.lease answer to the followin6 5uestions usin6 the a,o)e financial statements. !. .repare a common si;e ,alance sheet for ,oth of the years. 2. .repare a common ,ase year ,alance sheet considerin6 2008 to ,e the ,ase year. (. .repare a com,ined common si;e" common<,ase year ,alance sheet. *. For each account on this company4s ,alance sheet show the chan6e in the account durin6 2009 and note whether this chan6e was a source or use of cash. 7o your num,ers add up and make sense= E+plain your answer for total assets as compared to your answer for lia,ilities and owners e5uity. $. Find out the followin6 ratios 8for 2009:a. Current ratio,. >uick ratioc. Cash ratiod. Total asset turno)ere. In)entory turno)erf. 'ecei)a,les turno)er6. Total de,t ratio h. 7e,t2e5uity ratio i. E5uity multiplier?. Times interest earned ratiok. Cash co)era6e ratiol. .rofit mar6inm. 'eturn on assetsn. 'eturn on e5uity#. .repare the 2009 statement of cash flows for the company.

Due Date: 20th October, 2013 (Sunday)

%/7
7on4t for6et a,out the first >ui; to ,e held on that day@ Additional Instructions: !. .lease do not copy some,ody else4s assi6nment or pro)ide your solution to some,ody else. If you are cau6ht" you will 6et a ;ero. 2. Aou may su,mit your assi6nment in either hand2written or computer composed format. In case of computer composed format" you need to email me the soft copy 8with appropriate su,?ect mentionin6 the assi6nment num,er" your name" id" course" section" etc.: in addition to the hardcopy su,mission. (. %2* si;e paper is preferred for the assi6nment. % co)er pa6e is a must. Aou may use the sample co)er pa6e that I ha)e made a)aila,le alon6 with the assi6nment file. *. Aou must complete the assi6nment ,efore comin6 to the class on the due date. If anyone is seen doin6 the assi6nment in the class" s&he will 6et a ;ero. $. Aour assi6nment must look professional. 0therwise you may lose marks. Bowe)er" this does not mean you ha)e to do spiral or other types of ,indin6" or use color printin6. Cust staple your papers and su,mit. #. Aou may lose marks if you fail to follow the instructions properly.
3. 1ate assi6nments would ,e accepted with 209 penalty if su,mitted ,y the ne+t class" $09 penalty if su,mitted later ,ut within a week from the assi6ned date. No assignment would be accepted after a week from the submission due date.

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