Financial statements for Fay Thill Country

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How to Use this File

1) Click on the Ratios Tab. Review the Financial Statement information at the top of your screen and scroll down to the first ratio.
2) Select the Definition for both the numerator and denominator
for each of the ratios using the drop-down boxes
3) Input the values for both the numerator and denominator and
calculate the ratio. Pay careful attention to the rounding instructions.
Incorrect Answers will appear in red.
&C&F &A
&C© Kathleen R. O’Donnell

Adjusted Trial Balance

Trial Balances Permanent Income Statement
December 31, 2005 Temporary Statement of Owner's Equity
Which Financial Statement does it appear on? Permanent or Temporary Account? Adjusted Trial Balance Post Closing Trial Balance Balance Sheet
Debit Credit Debit Credit
Cash and Cash Equivalents 162 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Accounts Receivable 647 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Other Current Assets 486 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Short-term Investments 90 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Supplies 2,973 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Land and Buildings 9,029 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Other Long-Term Assets 1,914 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Accounts Payable 2,009 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Salaries Payable 599 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Other Current Liabilities 840 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Long-term Debt 4,950 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Other Long-Term liabilities 1,616 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Retained Earnings 4,793 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
Contributed Capital 494 0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
0 0 Balance Sheet 0 Please review T accounts and try again. Permanent
0 0 Statement of Owner's Equity 0 Correct Temporary
Prof Fees Revenue 0 0 Income Statement 0 Correct Temporary
Rent Revenue 0 0 Income Statement 0 Correct Temporary
Dividend Revenue 0 0 Income Statement 0 Correct Temporary
Interest Revenue 0 0 Income Statement 0 Correct Temporary
Deprec Exp - Bldg 0 0 Income Statement 0 Correct Temporary
Deprec Exp - Equip 0 0 Income Statement 0 Correct Temporary
Wages Expense 0 0 Income Statement 0 Correct Temporary
Interest Expense 0 0 Income Statement 0 Correct Temporary
Insurance Expense 0 0 Income Statement 0 Correct Temporary
Rent Expense 0 0 Income Statement 0 Correct Temporary
Supplies Expense 0 0 Income Statement 0 Correct Temporary
Postage Expense 0 0 Income Statement 0 Correct Temporary
Property Tax Expense 0 0 Income Statement 0 Correct Temporary
Repairs Expense 0 0 Income Statement 0 Correct Temporary
Telephone Expense 0 0 Income Statement 0 Correct Temporary
Utilities Expense 0 0 Income Statement 0 Correct Temporary
0 0 Income Statement 0 Correct Temporary
0 0 Income Statement Temporary
Total $ 15,301 $ 15,301 $ - 0 $ - 0
0
&C&F &A
&C© Kathleen R. O’Donnell

Ratios

Fay Thill Country Stores Average Common Shareholders' Equity
Comparative Income Statement Average Inventory
2008 2007 Average Net Accounts Receivable
Net Sales $ 1,800,000 $ 427,000 Average Total Assets
Cost of Goods Sold $ 1,080,000 $ 218,000 Cash + ST Invests + Net Accounts Receivable
Gross Profit $ 720,000 $ 209,000 Cost of Goods Sold
Depreciation Expense $ - $ - Dividend per share
Selling, general and administrative expenses $ 200,000 $ 134,000 Earnings per share
Income from Operations $ 520,000 $ 75,000 Gross Profit
Other Gains and (Losses) $ (50,000) $ - Income from Operations
Interest Expense $ 20,000 $ 12,000 Interest Expense
Income before Income Taxes $ 450,000 $ 63,000 Market price per common share
Income tax expense $ 27,000 Net Credit Sales
Net Income $ 450,000 $ 36,000 Net Income
Net Income - Preferred Dividends
Preferred Dividends 225,000 6,000 - 0 Net Income + Interest Expense
Weighted average number of common shares 100,000 9,000 Net Sales
Earnings per basic share Sales ÷ 365 days
Common Stock Dividends 20,000 Total Current Assets
Earnings per diluted share Total Common Shareholders' Equity
Market price per share $ 25.00 $ 32.50 Total Assets
Dividend per Share Total Liabilities
Total Shareholders' Equity
Fay Thill Country Stores Wtd avg # of shares of common stock outstanding
Comparative Balance Sheets Total Current Liabilities
Assets 2008 2007
Current Assets
Cash $ 490,000 $ 430,000 Working Capital
Short-Term Investments
Net Receivables
Other receivables
Inventory
Prepaid expenses and other
Total Current Assets 490,000 430,000
Property, Plant and Equipment
Buildings, net
Equipment, net
Property, Plant and Equipment, net
Other Assets
Goodwill $ - $ -
Other Intangible Assets, net $ - $ -
Long-term investment securities held to maturity $ - $ -
Other receivables - 0 - 0
Total Other Assets - 0 - 0
Total Assets $ 490,000 $ 430,000
Liabilities and Shareholders' Equity
Total Current Liabilities $ 290,000 $ 270,000
Long-term Liabilities
Total Liabilities 290,000 270,000
Shareholders' Equity
Preferred Stock - 6%
Common Stock - no par $ 200,000 $ 160,000
Retained Earnings
Accumulated other comprehensive Income - 0 - 0
Total Shareholders' Equity 200,000 160,000
Total Liabilities and Shareholders' Equity $ 490,000 $ 430,000
Current Year Prior Year Current Year Prior Year
Current Ratio Total Current Assets $490,000 $ 430,000 $ 490,000 $ 430,000 Total Current Assets
Total Current Liabilities $290,000 $ 270,000 $ 290,000 $ 270,000 Total Current Liabilities
Ratio $2 1.59 Ratio 1.69 1.59
Current Year Prior Year Current Year Prior Year
Times Interest Earned Ratio Income from Operations $520,000 $ 75,000 $ 520,000 $ 75,000 Income from OpeRations
Interest Expense $20,000 $ 12,000 $ 20,000 $ 12,000 Interest Expense
Times 26.00 6.25 Ratio 26.00 6.25
Current Year Prior Year Current Year Prior Year
Acid Test Ratio Cash + ST Invests + Net Accounts Receivable $490,000 $ 490,000 $ 430,000 Cash + ST Invests + Net Accounts Receivable
Total Current Liabilities $290,000 $ 290,000 $ 270,000 Total Current Liabilities
Ratio $2 Ratio 1.69 1.59
Current Year Prior Year Current Year Prior Year
Inventory Turnover Ratio Cost of Goods Sold $1,080,000 $ 218,000 $ 1,080,000 $ 218,000 Cost of Goods Sold
Average Inventory $0 $ - $ - $ - Average Inventory
Ratio $0 0.00 Ratio 0.00 0
Current Year Prior Year Current Year Prior Year
Days' sales in Average Receivables Average Net Accounts Receivable $0 $ - 0 $ - 0 $ - 0 Average Net Accounts Receivable
Sales ÷ 365 days $4,932 $ - $ 4,932 $ - Sales ÷ 365 days
Ratio $0 0 Ratio 0.00 0
Current Year Prior Year Current Year Prior Year
Accounts Receivable Turnover Net Credit Sales $1,800,000 $ 427,000 $ 1,800,000 $ 427,000 Net Credit Sales
Average Net Accounts Receivable $0 $ - $ - $ - Average Net Accounts Receivable
Ratio $0 0.00 Ratio 0.00 0
Current Year Prior Year Current Year Prior Year
Debt Ratio Total Liabilities $290,000 $ 290,000 $ 270,000 Total Liabilities
Total Assets $490,000 $ 490,000 $ 430,000 Total Assets
Ratio 0.59 Ratio 0.59 0.63
Current Year Prior Year Current Year Prior Year
Rate of Return on Net Sales Net Income $450,000 $ 36,000 $ 450,000 $ 36,000 Net Income
Net Sales $1,800,000 $ 427,000 $ 1,800,000 $ 427,000 Net Sales
Return 25.00% 8.43% Ratio 25.00% 8.43%
Rate of Return on Total Assets Net Income + Interest Expense $470,000 $ 48,000 $ 470,000 $ 48,000 Net Income + Interest Expense
Average Total Assets $460,000 $ 215,000 $ 460,000 $ 215,000 Average Total Assets
Return 102.17% 22.33% Ratio 102.17% 22.33%
Current Year Prior Year Current Year Prior Year
Return on Equity Net Income - Preferred Dividends $225,000 $ 30,000 $ 225,000 $ 30,000 Net Income - Preferred Dividends
Average Common Shareholders' Equity $180,000 $ 80,000 $ 180,000 $ 80,000 Average Common Shareholders' Equity
Return 125.00% 37.50% Ratio 125.00% 37.50%
Current Year Prior Year Current Year Prior Year
Gross Profit Percentage Gross Profit $720,000 $ 720,000 $ 209,000 Gross Profit
Net Sales $1,800,000 $ 1,800,000 $ 427,000 Net Sales
Gross Profit % 40.00% Ratio 40.00% 48.95%
Current Year Prior Year Current Year Prior Year
Earnings per Share Net Income - Preferred Dividends $225,000 $ 30,000 $ 225,000 $ 30,000 Net Income - Preferred Dividends
Wtd avg # of shares of common stock outstanding $100,000 9,000 $ 100,000 $ 9,000 Wtd avg # of shares of common stock outstanding
EPS $2.25 $ 3.33 Ratio $ 2.25 $ 3.33
Current Year Prior Year Current Year Prior Year
Price-Earnings Ratio Market price per common share $25.00 $ 32.50 $ 25.00 $ 32.50 Market price per common share
Earnings per share $2.25 $ 3.33 $ 2.25 $ 3.33 Earnings per share
Ratio 11.11 9.75 Ratio 11.11 9.75
Dividend Yield Ratio Dividend per share $0 $ 2.22 $ - 0 $ 2.22 Dividend per share
Market price per common share $25 $ 32.50 $ 25.00 $ 32.50 Market price per common share
Ratio $0 0.068 Ratio - 0 0.068
Book Value per share of Common Stock Total Common Shareholders' Equity $200,000 $ 160,000 $ 200,000 $ 160,000 Total Common Shareholders' Equity
Wtd avg # of shares of common stock outstanding $100,000 9,000 100,000 9,000 Wtd avg # of shares of common stock outstanding
Ratio $2 $ 17.78 Ratio 2.0000 17.778
Other Liquidity Measure:
Working Capital
Total Current Assets $ 490,000.00 Total Current Assets minus: Total Current Liabilities Equals Working Capital
Minus Total Current Liabilities $ 290,000.00
Equals Working Capital $ 200,000.00 $ 490,000.00 $ 290,000.00 $ 200,000.00
&C&F &A
&C© Kathleen R. O’Donnell

Trial Balances Answers

Trial Balances
December 31, 2005
Adjusted Post Closing
Debit Credit Debit Credit
Cash 4,000 4,000 0
Short-Term Invest 22,000 22,000 0
Supplies 7,100 7,100 0
Prepaid Insurance 6,000 6,000 0
Equipment 39,000 39,000 0
Accum Depr - Equip 20,000 0 20,000
Building 130,000 130,000 0
Accum Depr - Bldg 55,000 0 55,000
Land 45,000 45,000 0
Accounts Payable 15,500 0 15,500
Interest Payable 1,500 0 1,500
Rent Payable 2,500 0 2,500
Wages Payable 1,500 0 1,500
Prop Taxes Payable 800 0 800
Unearned Prof Fees 6,500 0 6,500
Long-term Notes Pay 66,000 0 66,000
J. Sharp, Capital 82,700 83,800
J. Sharp, Drawing 12,000
Prof Fees Revenue 96,000
Rent Revenue 13,000
Dividend Revenue 1,900
Interest Revenue 1,000
Deprec Exp - Bldg 10,000
Deprec Exp - Equip 5,000
Wages Expense 31,000
Interest Expense 4,100
Insurance Expense 9,000
Rent Expense 12,400
Supplies Expense 6,400
Postage Expense 3,200
Property Tax Expense 4,000
Repairs Expense 7,900
Telephone Expense 2,200
Utilities Expense 3,600
Total $ 363,900 $ 363,900 $ 253,100 $ 253,100
&C&F &A
&C© Kathleen R. O’Donnell