| FSA - Assignment |
| The balance sheet of DCC Corp., as of the end of Quarter 2, is provided below. |
| BS |
| | | Assets | | Liab. & Owners Equity |
| | Cash | | $11,300 | Accounts payable | | $500 |
| | A/R | | $1,000 |
| | Inventory | | | Long-term debt | | $8,000 |
| | parts | | $600 | Common Stock | | $4,000 |
| | finished goods | | $6,000 | ($2 par value) |
| | | | | Paid-in-surplus | | $5,000 |
| | | | | Retained Earnings | | $1,400 |
| | Total Assets | | $18,900 | Liab. & Owners Equity | | $18,900 |
| During Quarter 3: |
| | DCC purchased $2800 worth of parts, $1500 with cash, the remainder to be paid in Quarter 4. |
| | Sold 6 computers, each for $750. |
| | 4 were sold for cash, 2 were sold on credit with payment to be received in Quarter 4. |
| | The gross margin was 49% |
| | Annual interest rate on LTD is 2.0%. Interest is paid and expensed quarterly. |
| | SG&A expenses = $500 were paid in Quarter 3 |
| | The tax rate is 35% and Quarter 3 taxes will be paid in Quarter 4 |
| | The dividend payout ratio (dividends/Net Income) is 32% (paid immediately) |
| | 200 new shares of common stock were issued and sold for $2500 in Quarter 3 |
| | Purchase the warehouse DCC is located in for $25,000 cash on the first day of Quarter 3 |
| | $30,000 long-term debt was issued on the first day of the quarter |
| | The warehouse will be depreciated over 20 years. Depreciation is expensed quarterly. |
| Create journal entries for Quarter 3 transactions, and the Quarter 3 ending balance sheet. |
| Create a SCF for Quarter 3. |
| Round up the numbers - no decimal points |
| Your report should present the IS, BS and SCF and should be on one page |
| You have to use Excel to complete the assignment. Hand written work is unacceptable |
| IS | Sales revenue | | $4,500 |
| | COGS | | $2,295 |
| | SG&A | | $500 |
| | Interest Expense | | $190 |
| | Depereciation | | $313 |
| | Pre-tax income | | $1,203 |
| | Taxes | | $421 |
| | Net Income | | $782 |
| | Dividends | | $250 |
| JE | | Assets | | Liab. & Owners Equity |
| | Cash (parts) | | ($1,500) | Accounts payable | | $1,300 |
| | Inventory | | | Accrued Taxes | | $421 |
| | parts | | $2,800 | Long-term debt | | $30,000 |
| | finished goods | | ($2,295) |
| | Cash (revenue) | | $3,000 |
| | Cash(SG&A) | | ($500) |
| | Cash (Interest) | | ($190) | Retained earnings | | $532 |
| | Accum Dep. | | ($313) | Common Stock | | $400 |
| | Cash (dividends) | | ($250) | Paid-in-surplus | | $2,100 |
| | Accounts receivable | | $1,500 |
| | Cash (common stock) | | $2,500 |
| | Cash (LTD) | | $30,000 |
| | Cash (PP&E) | | ($25,000) |
| | PP&E | | $25,000 |
| | Total | | $34,752 | Total | | $34,752 |
| BS |
| | | Assets | | Liab. & Owners Equity |
| | Cash | | $19,360 | Accounts payable | | $1,800 |
| | A/R | | $2,500 | Accrued Taxes | | $421 |
| | Inventory | | | Long-term debt | | $38,000 |
| | parts | | $3,400 | Common Stock | | $4,400 |
| | finished goods | | $3,705 | ($2 par value) |
| | PP&E | | $25,000 | Paid-in-surplus | | $7,100 |
| | Accum Dep. | | ($313) | Retained Earnings | | $1,932 |
| | Total Assets | | $53,652 | Liab. & Owners Equity | | $53,652 |
| SCF |
| | NI | | 782 |
| | Depreciation | | 313 |
| | Change in A/R | | -1500 |
| | Change in Inv. | | -505 |
| | Change in A/P | | 1300 |
| | Change in accrued taxes | | 421 |
| CFO | CFO | | 810 |
| | PP&E | | ($25,000) |
| CFI | | | ($25,000) |
| | Long-term Debt | | $30,000 |
| | Dividends | | ($250) |
| | Common Stock | | $400 |
| | Paid-in-surplus | | $2,100 |
| | CFF | | $32,250 |
| | Change in cash | | $8,060 |
| | Beginning cash | | $11,300 |
| | Ending cash | | $19,360 |
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20201021185117fsa__sample_assignment_creating__fs.xls
