Quiz
Page 1 of 4 Note: It is recommended that you save your
response as you complete each question. Question 1 (40 points) Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended December 31, 2015
Philadelphia Widget Corporation
Income Statement
For the year ended December 31, 2015
Revenue $1,235,000 Cost of Goods Sold 806,356 Gross Profit $428,644 Administrative Expenses:
Salaries
Rent
Depreciation Total Administrative Expense $212,450
82,500
24,800 319,750 Operating Profit $108,894 Gain on Sale of Equipment 4,500 Interest Expense -42,115 Net Income $71,279 Philadelphia Widget Corporation
Comparative Balance Sheets
December 31, 2015; 2014; and 2013
2015
Cash $119,411 Accounts Receivable 85,455 Inventory 41,600 Prepaid Expenses 14,500 Total Current Assets 260,966 Land
Buildings & Equipment Accumulated Depreciation Total Assets Accounts Payable 50,000
$182,450 78,900 103,550 $414,516 $62,525 Wages Payable 4,500 Unearned Revenue 3,000 Current Portion of Long-Term Debt 50,000 Total Current Liabilities 120,025 Long-Term Debt 175,000 Common Stock, 3,500 shares outstanding Retained Earnings $35,000 84,491 Total Stockholders’ Equity 119,491 Total Liabilities & Equity $414,516 Instructions Prepare a Statement of Cash Flow using the indirect method for the 2015, using the above statements and the following ad 1. Equipment costing $30,000 was purchased in 2015.
2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 20
3. A dividend of $20,000 was declared and paid in 2015.
Philadelphia Widget Corporation
Statement of Cash Flows
For the year ended December 31, 2015
Cash provided (used) by operating
activities:
Net income
Adjustments to reconcile net income to net
cash:
Item
Item $71,279 $11,247
Amount Item
Item
Item
Item
Item Amount
Amount
Amount
Amount
Amount Net cash provided by operating activities
Cash provided (used) by investing activities:
Item
Item
Net cash (used) by investing activities
Cash provided (used) by financing activities:
Item
Item
Net cash (used) by financing activities
Total cash provided (used)
Cash at the beginning of the year
Cash at the end of the year Amount Amount
Amount
Amount Amount
Amount
Amount
Amount
Amount
Amount ar ended December 31, 2015. They have completed the balance sheet and income statement as shown. 2014
$89,564 2013
$105,644 83,118 78,400 48,560 62,600 18,100 24,000 239,342 270,644 50,000 50,000 $172,450 62,600 $166,800 109,850 54,580 112,220 $399,192 $432,864 $51,480 $45,200 4,500 1,500 – – 50,000 50,000 105,980 96,700 225,000 275,000 $35,000 $35,000 33,212 26,164
68,212 61,164 $399,192 $432,864 atements and the following additional information: was sold for $16,000 during 2015. Prepare a vertical analysis for the most
recent year for Philadelphia Widget
Corporation’ income statement. Philadelphia Widget Corporation
Vertical Analysis of Income Statement
Revenue
$1,235,000
Cost of Goods Sold
806,356
Gross Profit
$428,644
Administrative Expenses:
Salaries
212,450
Rent
82,500
Depreciation
24,800
Total Administrative Expense
319,750
Operating Profit
$108,894
Gain on Sale of Equipment
4,500
Interest Expense
-42,115
Net Income
$71,279 ##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#% Question 3 (20 points) Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended December 31, 2015
Philadelphia Widget Corporation
Income Statement
For the year ended December 31, 2015
Revenue $1,235,000 Cost of Goods Sold 806,356 Gross Profit $428,644 Administrative Expenses:
Salaries
Rent
Depreciation Total Administrative Expense Operating Profit Gain on Sale of Equipment
Interest Expense
Net Income Cash $212,450
82,500
24,800 319,750 $108,894 4,500
-42,115
$71,279
Philadelphia Widget Corporation
Comparative Balance Sheets
December 31, 2015; 2014; and 2013
2015
$119,411 2014
$89,564 Accounts Receivable 85,455 83,118 Inventory 41,600 48,560 Prepaid Expenses 14,500 18,100 260,966 239,342 50,000 50,000 Total Current Assets
Land
Buildings & Equipment Accumulated Depreciation $182,450 78,900 Total Assets $172,450 103,550 62,600 109,850 $414,516 $399,192 $62,525 $51,480 Wages Payable 4,500 4,500 Unearned Revenue 3,000 – Current Portion of Long-Term Debt 50,000 50,000 Total Current Liabilities 120,025 105,980 175,000 225,000 Accounts Payable Long-Term Debt Common Stock, 3,500 shares outstanding Retained Earnings $35,000 $35,000 84,491 33,212 Total Stockholders’ Equity
Total Liabilities & Equity Instructions
Calculate the following ratios based on 12/31/2015 numbers:
1. Earnings per share
2. Return on common stockholders’ equity
3. Return on assets
4. Current ratio
5. Acid-test ratio
6. Accounts receivable turnover Philadelphia Widget Corporation
2015 Ratios
Earnings per share $##.## Return on common stockholders’ equity
Return on assets
Current ratio
Acid-test ratio
Accounts receivable turnover ##.#%
##.#%
#.##
#.##
#.## 119,491 68,212 $414,516 $399,192 ended December 31, 2015. They have completed the balance sheet and income statement as shown. 2013
$105,644 78,400
62,600
24,000
270,644
50,000
$166,800 54,580 112,220 $432,864 $45,200
1,500
– 50,000 96,700 275,000 $35,000 26,164 61,164
$432,864 Prepare a horizontal analysis the two most
recent years of Philadelphia Widget
Corporation’s balance sheets. There are 4 questions. 1 per sheet. Please upload answer as Philadelphia Widget Corporation
Horizontal Analysis of Balance Sheet
2015
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Total Current Assets
Land
Buildings & Equipment, net
Total Assets
Accounts Payable
Wages Payable
Unearned Revenue
Current Portion of Long-Term Debt
Total Current Liabilities
Long-Term Debt
Common Stock
Retained Earnings
Total Liabilities & Equity $119,411
85,455
41,600
14,500
$260,966
50,000
103,550
$414,516
$62,525
4,500
3,000
50,000
$120,025
175,000
35,000
84,491
$414,516 ##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
–
##.#%
##.#%
##.#%
##.#%
##.#%
##.#% $89,564
83,118
48,560
18,100
$239,342
50,000
109,850
$399,192
$51,480
4,500
–
50,000
$105,980
225,000
35,000
33,212
$399,192 2014
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
##.#%
–
##.#%
##.#%
##.#%
##.#%
##.#%
##.#% Please upload answer as an excel file. Thank you 2013
$105,644
78,400
62,600
24,000
$270,644
50,000
112,220
$432,864
$45,200
1,500
–
50,000
$96,700
275,000
35,000
26,164
$432,864
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Posted 20 Jun 2017 07:06 AM
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