Problem: Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items. See Word doc attached.
a. What are the firm's net working capital, operating working capital, and debt ratio
b. Complete a common-sized income statement and a common-sized balance sheet. Interpret your findings.
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Depreciation Expense................................................................ $66,000
Cash.................................................................................... 225,000
Long-term Debt....................................................................... 334,000
Sales.................................................................................... 573,000
Accounts Payable..................................................................... 102,000
General and Administrative expense.............................................. 79,000
Buildings and equipment............................................................ 895,000
Notes Payable......................................................................... 75,000
Accounts Receivable................................................................. 153,000
Interest Expense...................................................................... 4,750
Accrued Expenses..................................................................... 7,900
Common Stock........................................................................ 289,000
Cost of goods sold................................................................... 297,000
Inventory............................................................................... 99,300
Taxes.................................................................................... 50,500
Accumulated Depreciation.......................................................... 263,000
Prepaid Expenses..................................................................... 14,500
Taxes Payable........................................................................ 53,000
Retained Earnings.................................................................... 262,900