Revised file uploaded
key26d
cash_flow_statements.pdf
Jeffersonian Corporation has been in business for over 50 years. The company is looking to expand operations into the Pacific Rim and would like an analysis of its financial statements to be prepared. Review the financial statements below:
Jeffersonian Corporation Comparative lncome Statement For years ended December 31, 2011 and 2010
Sales
Cost of goods sold
Gross Profit Operating Expenses Salaries Expense
Contract Labor Expense lnsurance Expense Supplies expense
Depreciation Expense Miscellaneous expense Marketing and Promotion expense Total operating expenses
Operating lncome lnterest expense lncome before taxes lncome taxes
Net lncome
5 l78,ooo.oo $ l5o,ooo.oo
s
s
s
s s
s
20Lt 2,486,000.00
L,523,000.00
2010
S z,o7s,ooo.oo 5 r,222,ooo.oo
s s s s s s s
963,000.00
145,000.00
240,OOO.OO
165,000.00
100,000.00
26,000.00
85,000.00
17,000.00
853,000.00
100,000.00
280,000.00
200,000.00
45,000.00
35,000.00
75,000.00
15,000.00
s s
s 5
5
s S
185,000.00
44,000.00 103,000.00
46,000.00
S r41,ooo.oo S 57,000.00 s +7,000.00 $ 19,000.00
94,000.00 38,000.00
Jeffersonian Corporation Comparative Balance Sheet For years ended December 3!,zOtl- and 2010
Assets 20!L
Current Assets Cash
Marketable Securities Accounts receivable Merchandise inventory Total current assets
Fixed Assets
Store Equipment, net Office Equipment, et Building, net Land
Total fixed assets Total assets
Liabilities Current Liabilities Accounts payable
Short term Liabilities Taxes payable
Total current liabilities Long-term liabilities
Mortgage payable
Total liabilities Stockholder's Equity
Common Stock, 55 par value Retained earnings
Total stockholder's equity Total
S l9,ooo.oo S S o5,ooo.oo S S r2o,ooo.oo S S z5o,ooo.oo S
2010
42,OO0.OO
96,000.00
100,000.00
265,000.00
S s14,ooo.oo S so3,ooo.oo s
s 5
s
400,000.00
45,000.00
625,000.00
100,000.00
350,000.00
50,000.00
675,000.00
100,000.00
s s s
$
S 1,17o,ooo.oo S 1,175,ooo.oo 1,684,000.00 1,679,000.00
5 164,000.00 S S z5,ooo.oo S
190,000.00
90,000.00
S z6,000.00 S r2,ooo.oo 265,000.00 292,OOO.OO
5 400,000.00 420,000.00
s s
s s
665,000.00
475,000.00
544,000.00
712,OOO.OO
475,000.00
491,000.00
S 1,o19,ooo.oo S g66,000.00 1,684,000.00 1,678,000.00
REQUIRED:
1. Prepare comparative income statements for year 20LI in comparison to year 2010.
2. Prepare common-size comparative balance sheet for years 2011 and 2010
3. Compute the following ratios for 20j.1.
Current ratio Profit margin ratio Acid-test ratio Total asset turnover Accounts receiva ble turnover Return on total assets Days' sales uncollected Earnings per share lnventory turnover Price earnings ratio Debt-to-equity ratio Dividend yield Times interest earned
