Financial Analysis

assignment5part1.xls

Ratio Analysis

BUS-FP3061 - Fundamentals of Accounting
Assessment 5, Part 1 Template




Orange Company			Orange Company
Income Statement			Balance Sheets
For the Years Ended December 31			December 31

	2013	2012		2013	2012
Net sales (all on account)	$ 600,000	$ 520,000	Assets
Expenses:			Current Assets
Cost of Goods Sold	$ 415,000	$ 354,000	Cash	$ 21,000	$ 18,000
Selling and administrative	$ 120,800	$ 114,600	Short-term investments	$ 18,000	$ 15,000
Interest Expense	$ 7,800	$ 6,000	Accounts Receivable	$ 86,000	$ 74,000
Income Tax Expense	$ 18,000	$ 14,000	Inventory	$ 90,000	$ 70,000
Total expenses	$ 561,600	$ 488,600	Total Current Assets	$ 215,000	$ 177,000
Net Income	$ 38,400	$ 31,400	Plant Assets	$ 423,000	$ 383,000
			Total Assets	$ 638,000	$ 560,000
Additional Data:
1. The common stock recently sold at $19.50 per share.			Liabilities and Stockholder's Equity
2. Cash dividends in the amount of $15,400 were paid-out in 2013.			Current Liabilities
			Accounts Payable	$ 122,000	$ 110,000
			Income Taxes Payable	$ 23,000	$ 20,000
			Total Curent Liabilities	$ 145,000	$ 130,000
			Long-term Liabilities
			Bonds Payable	$ 120,000	$ 80,000
			Total Liabilities	$ 265,000	$ 210,000
			Stockholder's Equity
			Common Stock ($5 par value)	$ 150,000	$ 150,000
			Retained Earnings	$ 223,000	$ 200,000
			Total Stockholder's Equity	$ 373,000	$ 350,000
			Total Liabilities and Stockholder's Equity	$ 638,000	$ 560,000