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A computer problem at a finance company resulted in incomplete financial statements for 2020. Management has asked if missing data can be filled in using given ratios. The document then provides the company's income statement and balance sheet with some cells labeled "Ratio" to be filled in, along with the applicable ratios. It asks to complete the statements by using formulas referring to existing data to populate the ratio cells.

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Alvaro Lopez
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185 views

Ej 2 Cap 3 Mayers Canvas

A computer problem at a finance company resulted in incomplete financial statements for 2020. Management has asked if missing data can be filled in using given ratios. The document then provides the company's income statement and balance sheet with some cells labeled "Ratio" to be filled in, along with the applicable ratios. It asks to complete the statements by using formulas referring to existing data to populate the ratio cells.

Uploaded by

Alvaro Lopez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Álvaro López

Karla Hernández
A computer problem at Mike Owjai Finance has resulted in incomplete financial statements. Management of the company ha
can fill in the missing data.

Mike Owjai Finance


Income Statements
For the Year Ended December 31, 2020

Sales 4,283,000
Cost of Goods 2,965,000
Gross Profit 1,318,000
Depreciation 72,000
Selling & Admin. Expense 954,250
Lease Expense 45,750
Earnings Before Interest & Taxes 246,000
Interest Expense 115,000
Earnings Before Taxes 131,000
Taxes 32,750
Net Income 98,250

Note: Tax Rate 25.00%

Recreate the financial statements as shown using formulas with the ratios fiven below to fill in the cells with the word "Ratio".
to round each of these answers to the nearest $1.

𝑹𝒐𝒕𝒂𝒄𝒊ó𝒏 𝒅𝒆 𝑨𝒄𝒕𝒊𝒗𝒐𝒔 𝑭𝒊𝒋𝒐𝒔= 𝑽𝒆𝒏𝒕𝒂𝒔/(𝑨


Ratio Value
Current Ratio 1.94235278
Inventory Turnover* 5.00000000
𝑹𝒂𝒛ó𝒏 𝒄𝒊𝒓𝒄𝒖𝒍𝒂𝒏𝒕𝒆= (𝑨𝒄𝒕𝒊𝒗𝒐𝒔 𝒄𝒊𝒓𝒄𝒖𝒍𝒂𝒏𝒕𝒆𝒔)/
A/R Turnover 10.00000000
Fixed Asset Turnover 1.43997848
LTD To Equity 0.59215753
Times Interested Earned 2.13913043 𝑷𝒂𝒔𝒊𝒗𝒐 𝑳𝑷 𝒂 𝑪𝒂𝒑𝒊𝒕𝒂𝒍= (𝑷𝒂𝒔𝒊𝒗𝒐 𝒂 𝑳𝒂𝒓𝒈𝒐 𝑷𝒍𝒂
Net Profit Margin 0.02293953
Return on Total Assets 0.02437572
Return on Equity 0.04486301
𝑽𝒆𝒄𝒆𝒔 𝒅𝒆 𝒊𝒏𝒕𝒆𝒓é𝒔 𝒈𝒂𝒏𝒂𝒅𝒐= (𝑼𝒕𝒊𝒍𝒊𝒅𝒂𝒅 𝒅𝒆 𝑶𝒑

* Uses Cost of Goods Sold in numerator

Complete the financial statements by using formulas that refer to existind data to fill in the remaining cells
nancial statements. Management of the company has asked you to see if you

Mike Owjai Finance


Balance Sheet
As of December 31, 2020

Assets
Cash 35,000
Accounts Receivable 428,300
Inventory 593,000
Total Current Assets 1,056,300
Gross Fixed Assets 3,450,000
Accumulated Depreciation - 72,000
Net Plant & Equipment 68,230
Total Assets 4,030,650
Liatilities & Owner´s Equity
Accounts Payable 359,575
Short-term Notes Payable 543,825
Total Current Liabilities 903,400
Long-term Debt 1,296,825 Capital contable 2,190,000.09
Common Equity 2,190,000
Total Liab. & Owner´s Equity 4,030,650

s fiven below to fill in the cells with the word "Ratio". Use the Round function

𝑹𝒐𝒕𝒂𝒄𝒊ó𝒏 𝒅𝒆 𝑨𝒄𝒕𝒊𝒗𝒐𝒔 𝑭𝒊𝒋𝒐𝒔= 𝑽𝒆𝒏𝒕𝒂𝒔/(𝑨𝒄𝒕𝒊𝒗𝒐𝒔 𝑭𝒊𝒋𝒐𝒔 𝑵𝒆𝒕𝒐𝒔)

𝑹𝒂𝒛ó𝒏 𝒄𝒊𝒓𝒄𝒖𝒍𝒂𝒏𝒕𝒆= (𝑨𝒄𝒕𝒊𝒗𝒐𝒔 𝒄𝒊𝒓𝒄𝒖𝒍𝒂𝒏𝒕𝒆𝒔)/(𝑷𝒂𝒔𝒊𝒗𝒐𝒔 𝒄𝒊𝒓𝒄𝒖𝒍𝒂𝒏𝒕𝒆𝒔)

𝑷𝒂𝒔𝒊𝒗𝒐 𝑳𝑷 𝒂 𝑪𝒂𝒑𝒊𝒕𝒂𝒍= (𝑷𝒂𝒔𝒊𝒗𝒐 𝒂 𝑳𝒂𝒓𝒈𝒐 𝑷𝒍𝒂𝒛𝒐)/(𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝑪𝒐𝒏𝒕𝒂𝒃𝒍𝒆)

𝑽𝒆𝒄𝒆𝒔 𝒅𝒆 𝒊𝒏𝒕𝒆𝒓é𝒔 𝒈𝒂𝒏𝒂𝒅𝒐= (𝑼𝒕𝒊𝒍𝒊𝒅𝒂𝒅 𝒅𝒆 𝑶𝒑𝒆𝒓𝒂𝒄𝒊ó𝒏)/(𝑮𝒂𝒔𝒕𝒐 𝒑𝒐𝒓 𝒊𝒏𝒕𝒆𝒓é𝒔)

d data to fill in the remaining cells

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