Quantitative Assignment The objectives of this assignment are: Determine what is found on each of the balance sheets and income statements. Calculate ratios from data on the firm found in the...

Quantitative Assignment, Week 1. Part 1
Determine in which statement the following items belong.
    Balance
Sheet
    Income
Statement
    Account Name
    Value
    
    
    Accounts payable
    4800
    
    
    Accounts receivable
    9600
    
    
    Accumulated depreciation
    34000
    
    
    Cash
    16550
    
    
    Common stock (10,000 shares)
    45000
    
    
    Cost of goods sold
    5,750
    
    
    Depreciation expense
    500
    
    
    Earnings before taxes
    21,600
    
    
    General & admin expense
    850
    
    
    Gross buildings & equipment
    122000
    
    
    Gross profits
    26,250
    
    
    Interest expense
    3,300
    
    
    Inventories
    6500
    
    
    Long-term debt
    55000
    
    
    Net buildings & equipment
    88000
    
    
    Net income
    20,160
    
    
    Operating income (EBIT)
    24,900
    
    
    Retained earnings
    15250
    
    
    Sales
    32,000
    
    
    Short-term notes payable
    600
    
    
    Taxes
    1,440
    
    
    Total assets
    120,650
    
    
    Total cu
ent assets
    32,650
    
    
    Total cu
ent liabilities
    5400
    
    
    Total equity
    60,250
    
    
    Total liabilities
    60,400
    
    
    Total liabilities and equity
    120650
Use the items above to compose a Balance Sheet and Income Statement on the next page.
    Task 1. Fill in the missing amounts.
    Balance Sheet Year 20X1
    ASSETS
    Cu
ent assets
    
    Cash
    16,550
    Accounts Receivable
    9600
    Inventories
    6,500
    Total cu
ent assets
    232,650632222,15023
    Gross Building & Equipment
    122,000
    Less accumulated Depreciation
    34,000
    Net buildings & equipment
    88000
    Total assets
    155555512520650
    LIABILITIES AND EQUITY
    Liabilities
    
    Short-term notes payable
    600
    Accounts Payable
    4800
    Total cu
ent liabilities
    5400
    Long term debt
    55000
    Total liabilities
    60,4006060400
    Equity
    
    Common Stock
    45000
    Retained earnings
    15250
    Total equity
    60250
    Total Liabilities & Equity
    120650
    
    
    Income Statement
    
    Year Ending 20X1
    
    Sales
    32,000
    Less Cost of Goods sold
    5,750
    Gross Profit
    26,25026,250
    General & admin expense
    850
    Depreciation expense
    500
    Operating income (EBIT)
    2
    Interest expense
    3,300
    Earnings before taxes
    221,600
    Taxes
    1,440
    Net income
    2200,160
Quantitative Assignment, Week 1. Part 2
    Task 2. Fill in the missing equations. List the Financial Statement where the data is found. Solve the ratios.
    ASSUME THAT THE STOCK PRICE IS $6.50 per share.
    
    Equations
    
    Statement?
    
    Amounts
    
    Answe
    How liquid is the firm?
    
    
    
    
    
    
    
    Cu
ent ratio
    Cu
ent Assets
    
    
    
     32,650
    
     6.04
    
    Cu
ent Liabilities
    
    
    
     5,400
    
    
    
    16,550+9,600+6500/5,400
    
     Balance Statement
    
    
    
    
    Quick ratio or Acid...