Financial Analysis and Planning using attached Excel Sheet Template
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fn2640_w3_lab2.pdf
FN2640: Week 3 Financial Management and Planning
Lab 3.2/ Financial Analysis and Planning
1
Use a spread sheet to construct a common-size balance sheet from the following balance sheet and
the income statement.
Assets Liabilities
Cash $10,000 Accounts payable $12,000
Accounts receivable 100,000 Notes payable 50,000
Inventory 110,000 Total current liabilities $62,000
Total current assets 220,000 Long-term debt 128,000
Gross plant and equipment 500,000 Total liabilities 190,000
Less: accumulated
depreciation 125,000
Common stock ($1 par, 100,000
shares) 100,000
Net plant and equipment 375,000 Paid-in-capital 155,000
Total assets 595,000 Retained earnings 150,000
Total stockholders' equity $405,000
Total liabilities and equity $595,000
Income Statement
Sales $2,175,000
Cost of goods sold $575,000
Gross profit $1,600,000
General and administrative expense $200,000
Selling and marketing expense $250,000
Depreciation $50,000
Operating income $1,100,000
Interest $100,000
Income before taxes $1,000,000
Income taxes (30%) $300,000
Net income $700,000
Click here to access the worksheet for this assessment.
Submission Requirements:
Answer each problem in detail with conclusion and results.
Submit your answer in a Microsoft Excel file, showing step-by-step solutions to all calculations.
Evaluation Criteria:
Click here to download the rubric that will be used to evaluate this lab.
