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Sasha Company

Sasha Company's statement of financial position and comprehensive income statement for 2020 have been reconstructed based on additional financial information provided. The statement of financial position shows total assets of $1,440,000 including current assets of $449,500 and non-current assets of $890,500. Total liabilities are $640,000 comprising current liabilities of $240,000 and non-current liabilities of $400,000 in bonds payable. Equity totals $800,000 with common stock of $500,000 and retained earnings of $300,000. The comprehensive income statement reveals net income of $175,000 on total sales of $1,500,000 with cost of goods sold of $975,

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Vivienne Lei Bolos
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532 views

Sasha Company

Sasha Company's statement of financial position and comprehensive income statement for 2020 have been reconstructed based on additional financial information provided. The statement of financial position shows total assets of $1,440,000 including current assets of $449,500 and non-current assets of $890,500. Total liabilities are $640,000 comprising current liabilities of $240,000 and non-current liabilities of $400,000 in bonds payable. Equity totals $800,000 with common stock of $500,000 and retained earnings of $300,000. The comprehensive income statement reveals net income of $175,000 on total sales of $1,500,000 with cost of goods sold of $975,

Uploaded by

Vivienne Lei Bolos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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SASHA COMPANY

STATEMENT OF FINANCIAL POSITION


As of December 31, 2020

ASSETS
Current Assets:
Cash ?
Marketable Securities 50,000
Accounts Receivable, net ?
Inventory ? ?
_________
Non-current Assets:
Plant and Equipment, net ?_________
Total Assets ?
_________

LIABILITIES AND EQUITY


Current Liabilities: ?
Non-current Liabilities:
Bonds Payable, 12.5% ?___________
Total Liabilities ?

Equity:
Common Stock 500,000
Retained Earnings 300,000 800,000_____
Total Liabilities and Equity ?

SASHA COMPANY
COMPREHENSIVE INCOME STATEMENT
For the Year Ended December 31, 2020

Net Sales ?
Cost of Goods Sold ?
Gross Margin on Sales 525,000
Operating Expenses ?
Operating Income ?
Interest Expense ?
Net Income before Taxes ?
Income Tax (30% Tax Rate) ?
Net Income ?

Additional Information:
1. Operating expenses were 15% of net sales.
2. Acid-test ratio was 1.3 : 1
3. Times interest earned was 6 times.
4. Gross Margin was 35% of net sales.
5. The age of receivables was 36 days.
6. The beginning accounts receivable was 160,000. Use 360-day year.
7. Inventory turnover was 4 times. The beginning inventory amounted to 250,000.
8. Total debt to stockholders’ equity was .8 : 1.

Required: Based on the given the data, reconstruct the Statement of Financial Position and
Comprehensive Income Statement of SASHA Company for the year 2020.

SASHA COMPANY
STATEMENT OF FINANCIAL POSITION
As of December 31, 2020

ASSET
Current Asset
Cash 122,000.00
Marketable Securities 50,000.00
Accounts Receivable 140,000.00
Inventory 237,500.00
Noncurrent Asset
Plant and equipment, 890,500.00
Total Assets P 1,440,000.00
LIABILITIES AND EQUITY
Current Liabilities 240,000.00
Non Current Liabilities 400,000.00
Bonds Payable, 12.5%
Total Liabilities 640,000.00

Equity:
Common Stock 500,000.00
Retained Earnings 300,000.00 800,000.00
Total Liabilities and Equity P 1,440,000.00

SASHA COMPANY
COMPREHENSIVE INCOME STATEMENT
For the Year Ended December 31, 2020

Net Sales 1,500,000.00


Cost of Goods Sold 975,000.00
Gross Margin on Sales 525,000.00
Operating Expenses 225,000.00
Operating Income 300,000.00
Interest Income 50,000.00
Net Income before Taxes 250,000.00
Income Tax (30%) 75,000.00
Net Income 175,000.00

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