Jane Austin Bookstore – Financial Analysis
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2) The following financial statements are to be used to answer the following questions: (5 points each, total 35 points)
Jane Austin Bookstore | |||||
Balance Sheet | |||||
December 31, 2012 | |||||
Assets | Liabilities and Stockholder's Equity | ||||
Cash and equivalents |
| $5,000 | Accounts Payable | $10,000 |
|
Accounts receivable |
| $12,000 | Taxes Payable | $4,500 |
|
Inventory |
| $25,000 | Other Liabilities | $2,500 |
|
Prepaid Expenses |
| $3,000 | Mortgage payable | $60,000 |
|
Land |
| $54,000 | Total Liabilities |
| $77,000 |
Building | $63,000 |
|
|
|
|
Accmulated Depreciation - Building | ???? | $51,000 | Common Stock | $30,000 |
|
Trucks | $20,000 |
| Retained earnings | ???? |
|
Accmulated Depreciation - Trucks | $18,000 | $2,000 | Total Stockholder's equity |
| $75,000 |
|
|
|
|
|
|
Total Assets |
| $152,000 | Total Liabilities and Stockholder's Equity |
| $152,000 |
Jane Austin Bookstore | ||
Income Statement | ||
For the year ended December 31, 2012 | ||
Book Sales |
| $100,000 |
Cost of goods sold |
| ???? |
Gross Profit |
| $35,000 |
Operating expenses |
|
|
Selling and administrative expense | $14,000 |
|
Depreciation expenses | $8,000 |
|
Total operating expense |
| $22,000 |
Income from operations |
| $13,000 |
Income tax (35%) expense |
| $4,550 |
Net Income |
| $8,450 |
What is the Accumulated Depreciation for Buildings on December 31, 2012?
A) $12,000
B) $51,000
C) $63,000
D) $114,000
What is the Cost of goods sold for the year ended December 31, 2012?
A) $8,000
B) $12,000
C) $65,000
D) $100,000
What are the total current assets as of December 31, 2011?
A) $17,000
B) $45,000
C) $99,000
D) $152,000
What is the ending retained earnings balance as of December 31, 2012?
A) $30,000
B) $45,000
C) $758,000
D) $452,000
If Jane Austin Bookstore sold 10,000 books during 2012, what is the average selling price per book?
A) $3.50
B) $6.50
C) $7.25
D) $10.00
If trucks are depreciated over ten years with no residual value, how many years has Jane Austin Bookstore had this truck?
A) 1 year
B) 6 years
C) 9 years
D) 10 years
What are total long-term assets?
A) $53,000
B) $54,000
C) $107,000
D) $137,000
12 years ago
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