80.2K

Verified Solution

Link Copied!

1. Produce a balance sheet for a company that distinguishes between current and non-current assets and liabilities. 2. Create a balance sheet from a trial balance. 3. Create a comparison of net income based on different methods of inventory accounting. 4. Analyze a statement of cash flows and show where each line item can be found or calculated from the other financial statements. 5. Prepare a full analysis of key financial ratios for a company and state conclusions about the financial strength of the company compared to industry ratios.

Create a Balance Sheet from the trial balance:
		Debits	Credits	Classification
	Cash	300,000.00		Current asset
	Sales		(10,000,000.00)	Income statement
	Cost of Goods Sold	7,000,000.00		Income statement
	Selling Expenses	500,000.00		Income statement
	Other income		(50,000.00)	Income statement
	Administrative expenses	350,000.00		Income statement
	Interest Expenses	12,500.00		Income statement
	Land	300,000.00		non-current asset
	Building	2,000,000.00		non-current asset
	Long Term bond payable		(550,000.00)	non-current liability
	Accrued Liabilities		(50,000.00)	current- liability
	Accumulated Depreciation Buildings		(250,000.00)	non-current asset
	Equipment	750,000.00		non-current asset
	Receivables	100,000.00		current asset
	Allowance for doubtful accounts		(7,500.00)	current asset
	Accumulated depreciation equipment		(125,000.00)	non-current asset
	Common Stock		(200,000.00)	equity
	Payables		(115,000.00)	current Liability
	Inventories	200,000.00		current asset
	Prepaid Expenses	50,000.00		current asset
	Retained Earnings		(215,000.00)	equity
		11,562,500.00	(11,562,500.00)

	Assets						Equity and Liabilities
	Current Assets						Current Liabilities
	Total Current Assets			-			Total Current Liabilities			-
							Total long term Liabilities			-
	Total property plant and equipment			-
							Total Equity			-
	Total Assets			-			Total Equity and liabilities			-

Answer & Explanation Solved by verified expert

See Answer