Fin 621
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Financial Statement Analysis (FIN621) Assignment # 01 Please read the following instructions carefully before attempting the assignment: •This assignment covers lectures from Lesson no. 1 to Lesson no. 16 •Last date for submission of Assignment # 01 is November 12, 2009. • • • • • •
Your answer should be relevant and to the point. Don’t rely only on handouts, use other reference books also. Make sure that you upload the solution before due date. No solution will be accepted through E-mail after due date. Cheating or copying is strictly prohibited; No credit will be given to copied assignment. Once you upload the assignment on LMS, it will not be replaced in any condition. You are required to attempt the assignment in MS Word format. The assignment attempted in any other format shall be marked ZERO.
Use the following balance sheet and income statement to prepare the “Statement of cash flows” under the “Indirect Method”. (Marks: 20)
Income Statement for Year 2009
$
Sales Expense Cost of goods sold Wages Depreciation Interest Total expenses
100,000 40,000 5,000 7,000 500 52,500
Income from continuing operations
47,500
Gain on sale of land
10,000
Pretax income
57,500
Provision for taxes
20,000
Net income
37,500
Common Dividends declared.
8,500
Balance Sheet for Year 2008 And 2009 2009 $
2008 $
Assets Current Assets: Cash Accounts receivables Inventory
33,000 10,000 5,000
9,000 9,000 7,000
35,000 85,000 (16,000) 69,000 10,000
40,000 60,000 (9,000) 51,000 10,000
162,000
126,000
Current Liabilities Accounts payable Wages payable Interest payable Taxes payable Dividend payable Total current liabilities
9,000 4,500 3,500 5,000 6,000 28,000
5,000 8,000 3,000 4,000 1,000 21,000
Non-current liabilities Bonds Deferred tax liability
15,000 20,000
10,000 15,000
Total Liabilities
63,000
46,000
40,000 59,000 99,000
50,000 30,000 80,000
162,000
126,000
Non-current Assets Land Gross Plant and equipment less: Accumulated Depreciation Net plant and equipment Goodwill Total Assets Liabilities
Shareholder's Equity Common Stock Retained Earnings Total Equity Total Liabilities and Shareholder's Equity
Your answer should be relevant and to the point. Don’t rely only on handouts, use other reference books also. Make sure that you upload the solution before due date. No solution will be accepted through E-mail after due date. Cheating or copying is strictly prohibited; No credit will be given to copied assignment. Once you upload the assignment on LMS, it will not be replaced in any condition. You are required to attempt the assignment in MS Word format. The assignment attempted in any other format shall be marked ZERO.
Use the following balance sheet and income statement to prepare the “Statement of cash flows” under the “Indirect Method”. (Marks: 20)
Income Statement for Year 2009
$
Sales Expense Cost of goods sold Wages Depreciation Interest Total expenses
100,000 40,000 5,000 7,000 500 52,500
Income from continuing operations
47,500
Gain on sale of land
10,000
Pretax income
57,500
Provision for taxes
20,000
Net income
37,500
Common Dividends declared.
8,500
Balance Sheet for Year 2008 And 2009 2009 $
2008 $
Assets Current Assets: Cash Accounts receivables Inventory
33,000 10,000 5,000
9,000 9,000 7,000
35,000 85,000 (16,000) 69,000 10,000
40,000 60,000 (9,000) 51,000 10,000
162,000
126,000
Current Liabilities Accounts payable Wages payable Interest payable Taxes payable Dividend payable Total current liabilities
9,000 4,500 3,500 5,000 6,000 28,000
5,000 8,000 3,000 4,000 1,000 21,000
Non-current liabilities Bonds Deferred tax liability
15,000 20,000
10,000 15,000
Total Liabilities
63,000
46,000
40,000 59,000 99,000
50,000 30,000 80,000
162,000
126,000
Non-current Assets Land Gross Plant and equipment less: Accumulated Depreciation Net plant and equipment Goodwill Total Assets Liabilities
Shareholder's Equity Common Stock Retained Earnings Total Equity Total Liabilities and Shareholder's Equity
