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Financial Statement Activity W Answers

The document contains comparative balance sheets and income statements for XYZ Company for the years 2022, 2021 and 2020. It includes various financial ratios to analyze the company's liquidity, activity, leverage and profitability for each year. Key figures show total assets increased from $380,000 in 2021 to $445,000 in 2022 while net income grew slightly from $20,394 in 2021 to $20,800 in 2022.

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Lizlee Laluan
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39 views

Financial Statement Activity W Answers

The document contains comparative balance sheets and income statements for XYZ Company for the years 2022, 2021 and 2020. It includes various financial ratios to analyze the company's liquidity, activity, leverage and profitability for each year. Key figures show total assets increased from $380,000 in 2021 to $445,000 in 2022 while net income grew slightly from $20,394 in 2021 to $20,800 in 2022.

Uploaded by

Lizlee Laluan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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XYZ Company

COMPARATIVE BALANCE SHEET


December 31, 2022, 2021, and 2020

LIQUIDITY RATIO
YEARS 2022' 2021' 2020' 1 NWC
ASSETS:
Current Assets
2 CR
Cash 65,000.00 70,000.00 75,000.00
Accounts Receivable 40,000.00 35,000.00 20,000.00
Marketable Securities 40,000.00 35,000.00 10,000.00
3 QA
Inventory 100,000.00 80,000.00 100,000.00
Total Current Assets 245,000.00 220,000.00 205,000.00
Non-Current Assets:
Plant Assets (net) 200,000.00 160,000.00 170,000.00 ACTIVITY RATIO
Total Assets 445,000.00 380,000.00 375,000.00

1 ART
LIABILITIES:
Current Liabilities 110,800.00 105,000.00 104,000.00
Long term liabilities 160,000.00 145,000.00 140,000.00
Total Liabilities 270,800.00 250,000.00 244,000.00
2 ACP
STOCKHOLDER'S EQUITY:
Common stock (P 5.00 par
100,000.00 100,000.00 100,000.00
value, 20,000 shares 3 IT
Retained Earnings 74,200.00 30,000.00 31,000.00
Total Stockholder's Equity 174,200.00 130,000.00 131,000.00
TOTAL LIABILITIES &
445,000.00 380,000.00 375,000.00
STOCKHOLDER'S EQUITY 4 AAI

5 OC =
XYZ Company
COMPARATIVE INCOME STATEMENT
6 FAT
December 31, 2022, 2021, and 2020

YEARS 2022' 2021' 2020'


7 TAT
Sales 200,000.00 210,000.00 100,000.00
Sales return and allowances 40,000.00 25,000.00 6,000.00
Net Sales 160,000.00 185,000.00 94,000.00
Cost of Goods Sold 100,000.00 115,625.00 50,000.00 LEVERAGE
Gross Profit 60,000.00 69,375.00 44,000.00
Operating Expenses:
1 DEBT
Selling expenses 22,000.00 25,000.00 16,000.00
General Expenses 8,000.00 12,000.00 8,000.00
Total Operating expenses 30,000.00 37,000.00 24,000.00
2 D-TO-E
Income from operations 30,000.00 32,375.00 20,000.00
Non-Operating Income 6,000.00 2,500.00 3,500.00
Income before interest expense
36,000.00 34,875.00 23,500.00
and taxes 3 TIE
Interest expense 4,000.00 3,500.00 3,000.00
Income before taxes 32,000.00 31,375.00 20,500.00
Income tax (35% rate) 11,200.00 10,981.00 7,175.00
Net Income 20,800.00 20,394.00 13,325.00 PROFITABILITY

1 GPM

2 PM

3 RTA

4 RCSE
2022" 2021"

LIQUIDITY RATIO 2022 - 2021 2021 - 2020


CA - CL 245,000.00 110,800.00 134,200.00 220,000.00 105,000.00 115,000.00

CA 245,000.00 220,000.00
2.21 221.00% 2.10 210.00%
CL 110,800.00 105,000.00

C+MS+R 65+40+40 70+35+35


1.31 131.00% 1.33 133.00%
CL 110,800.00 110,800.00

ACTIVITY RATIO

NCS 160,000.00 185,000.00


4.27 6.73
AVE. A/R (40+35)/2 (35+20)/2

360 360.00 360.00


84.31 DAYS 53.49 DAYS
ART 4.27 6.73

CGS 100,000.00 1.11 115,625.00 1.28


AVE. INVTY. (100+80)/2 (80+100)/2

360 360.00 324.32 DAYS 360.00 281.25 DAYS


IT 1.11 1.28

ACP+AAI 84.31 DAYS +324.32 DAYS 408.63 DAYS 53.49 Days + 281.25 days 334.74 days

NS 160,000.00 185,000.00
88.89% 112.12%
ANFA (200+160)/2 (160+170)/2

NS 160,000.00 185,000.00
38.79% 49.01%
ATA (445+380)/2 (380+375)/2

LEVERAGE

TD 270,800.00 250,000.00
60.85% 65.79%
TA 445,000.00 380,000.00
TL 270,800.00 250,000.00
1.55x 1.92x
SE 174,200.00 130,000.00

36,000.00 34,875.00
EB4I&T 9x 9.96x
IE 4,000.00 3,500.00

PROFITABILITY

GP 60,000.00 69,375.00
37.50% 37.50%
NS 160,000.00 185,000.00

NI 20,800.00 20,394.00
13.00% 11.02%
NS 160,000.00 185,000.00

NI 20,800.00 20,394.00
5.04% 5.40%
ATA (445+380)/2 (380+375)/2

NI 20,800.00 20,394.00
20.80% 20.39%
ACSE (100+100)/2 (100+100)/2

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