Prepare the income statement and balance sheet, Financial Accounting

Assignment Help:

Below is the Trial Balance for Clay Employment Services, year ending December 31, 2011.  Previous period's information were as follows: net receivables, $290,000 and inventory, $82,000.  Total revenues were $350,000 for 2010, 360,000 for 2009, and 295,000 for 2008.

Requirements:

1)  Prepare the income statement, statement of retained earnings, and balance sheet.

2) Calculate the following ratios: current ratio, quick ratio, debt ratio, accounts receivable turnover, and inventory turnover.  Briefly explain your answers.

3)  Calculate the vertical analysis for total current assets.

4)  Calculate the horizontal analysis on total revenues from 2008 thru 2011.

Cash                                                                        198,000

Accounts receivable                                                    300,000

Inventories                                                                 78,000

Prepaid insurance expense                                            4,000

Supplies                                                                      2,000

Furnitures                                                                 100,000

Accumulated depreciation, furnitures                              60,000

Building                                                                      250,000

Accumulated depreciation, building                                140,000

Accounts payable                                                        310,000

Salaries payable                                                           5,000

Unearned service revenue                                           13,000

Notes payable ($12,000 due in the current year)            40,000

Mortgage payable (1/3 is due in the current year)          30,000

Retained earnings                                                    293,000

Dividends                                                                   65000

Service revenue                                                           300,000

Professional fees revenue                                            30,000

Salary expense                                                            170,000

Supplies expense                                                         4,000

Depreciation expense, furnitures                                20,000

Depreciation expense, building                                   11,000

Rent expense                                                               9,000

Interest expense                                                          7,000

Utilities expense                                                          3,000


Related Discussions:- Prepare the income statement and balance sheet

Finance management, Establish a budget and allocate funds in accordance wit...

Establish a budget and allocate funds in accordance with statutory and organisational requirements

Income statement, Income statement2013 2012 2011 Net revenue 5,075,390.. 4,...

Income statement2013 2012 2011 Net revenue 5,075,390.. 4,763,180.. 4,158,507 Cost of goods 1,377,242.. 1,297,102.. 1,134,966.. Gross profit 3,698,148.. 3,466,078.. 3,023,541 Total

Case law about investment, If you inherited $45,000 today and invested all ...

If you inherited $45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

Vertical anaylsis, Income Statement 2013 2012 2011 Vertical Anaylsis Vertic...

Income Statement 2013 2012 2011 Vertical Anaylsis Vertical Anayl Horizontal Net revenue 5,075,390 4,763,180 4,158,507 year 1 year 2 Anaylsis Cost of goods 1,377,242 1,297,102 1,134

Effect of resolution-liquidation of companies, Effect of Resolution The...

Effect of Resolution The consequences of the resolution to wind up are: 1) The company must cease to carry on its business except so far as is necessary for the beneficial win

Steps required to do the arbitrage. , John Chan considers buying a six-mont...

John Chan considers buying a six-month stock futures contract on the shares of Li & Fung Limited. Shares of Li & Fung Limited are now trading at $50 per share and it is expected th

Financial mathematics, abc limied is considering whether to invest $90000 ...

abc limied is considering whether to invest $90000 in the purchase of a new item of equipment. The equipment would be paid for with a down-payment of $60000 and the payment of the

Looking for income statement and balance sheet, Looking for Income Statemen...

Looking for Income Statement and Balance Sheet for the Better USA, Inc. company for 2010 and 2011 Facts: Sales 11,573 (2010) and 12,936 (2011) - Depreciation 1,661 and 1,736 - Cost

Accounting Project, Can you help me balance my account number out

Can you help me balance my account number out

Explain irs, The IRS is conducting a transfer pricing examination of USAco,...

The IRS is conducting a transfer pricing examination of USAco, a wholly-owned U.S. subsidiary of FORco. USAco purchases widgets from FORco for resale in the United States. The IRS

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd