| Problem 1 - Financial Statement Analysis |
| Complete the yellow highlighted cells on the balance sheet and income statement using the |
| following information: |
| | 2010 | 2009 |
| Accounts Receivable | $1,200,000 | $1,000,000 |
| Allowance for Doubtful Accounts | 35,000 | 50,000 |
| Income Tax Expense | 100,000 | 120,000 |
| Blue Bill Corporation |
| Income Statement |
| For the year ended 2010 |
| | 2010 | 2009 |
| Net sales | $4,250,000 | $5,175,000 |
| Cost of goods sold | $2,220,000 | $2,605,000 |
| Gross Profit |
| Operating Expenses | $650,000 | $720,000 |
| Other Expenses | $120,000 | $115,000 |
| Earnings Before Interest and Taxes (EBIT) |
| Net interest expenses | $0 | $15,000 |
| Income Tax Expense |
| Net Earnings |
| Earnings per share (1,250 shares issued) |
| Blue Bill Corporation |
| Balance Sheet |
| December 31, 2010 |
| | 2010 | 2009 |
| Current assets |
| Cash and cash equivalents | $500,000 | $450,000 |
| Accounts receivable |
| Less: Doubtful accounts |
| Inventory | $2,912,000 | $1,980,000 |
| Other current assets | $45,000 | $50,000 |
| Total current assets |
| Net property, plant, and equipment | $250,000 | $200,000 |
| Other assets | $16,000 | $15,000 |
| Total assets |
| Current liabilites |
| Accounts payable | $1,000,000 | $900,000 |
| Other current liabilities | $35,000 | $22,000 |
| Long-term debt | $900,000 | $930,000 |
| Equity | | $1,793,000 |
| Total liabilities and equity |
miniet
module_06_financial_statements_problem.xlsx
