BUS5111- Financial Management

5111WA1FinancialInfo.xlsx

Balance Sheet

Balance Sheet items	2018	2017
CURRENT ASSETS
Cash	456,500	222,400	Cash increase - due to no dividends paid in 2018
Receivables	3,936,400	3,320,000
Inventory	89,800	100,200
Other assets	1,169,500	934,300
Total current assets	5,652,200	4,576,900	Current ratio 2017:
			Current ratio 2018:
LONG TERM ASSETS
Note Receivable	380,600	280,700	Some additional debt acquired in 2018
Equipment (net of depreciation)	975,000	1,017,800
Total long term assets	1,355,600	1,298,500
TOTAL ASSETS	7,007,800	5,875,400
LIABILITIES AND STOCKHOLDERS' EQUITY			Debt ratio 2017:
			Debt ratio 2018:
CURRENT LIABILITIES
Accounts payable	2,783,100	2,805,700
Note payable (current maturities)	277,550	272,550
Other accrued liabilities	265,300	214,600
Total current liabilities	3,325,950	3,292,850
LONG TERM LIABILITIES
Notes payable (long term)	454,800	454,800
Long term accrued liabilities	389,550	320,250
Total long term liabilities	844,350	775,050
TOTAL LIABILITIES	4,170,300	4,067,900
STOCKHOLDERS' EQUITY
Common stock	450,000	450,000
Retained Earnings	2,387,500	1,357,500
Total stockholders' equity	2,837,500	1,807,500
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	7,007,800	5,875,400

Income Statement items	2018	2017	Answers/Comments
Service Contract Revenues	9,200,000	6,595,400	Increase in contracts
Service Contract Costs	(6,503,100)	(4,957,800)
Gross Profit	2,696,900	1,637,600	Gross profit margin 2017:
			Gross profit margin 2018:
General and Administrative Expenses	(896,000)	(756,000)
Operating Income	1,800,900	881,600	Increase in profit - see above comment
Gain on sale of equipment	59,900	7,700
Interest expense	(69,500)	(70,800)
Other expense	(9,600)	(63,100)
Income before taxes	1,781,700	755,400
Taxes	(451,700)	(300,900)
Net Income	1,330,000	454,500	Increase in net income from 2017-2018
Retained Earnings, Beginning Balance	1,057,500	1,053,000
	2,387,500	1,507,500
Less: Dividends paid	0	(150,000)	No dividend paid in 2018
Retained Earnings, Ending Balance	2,387,500	1,357,500