Homework
Financial Tasks
Problem I: Preparing Financial Statements
Information below is for Buraydah Manufacturing, Inc.for the year ended December 31, 20x1except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated.
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Accumulated depreciation
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2,817,000
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Sales
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5,826,000
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Accounts receivable
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395,000
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Interest expense
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237,000
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Cost of goods sold
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2,672,000
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Short term notes payable
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195,000
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Income taxes
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366,600
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Inventories
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967,000
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Common stock
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428,000
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Dividends paid
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120,000
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Cash
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986,500
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Marketing, general and administrative expenses
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1,678,500
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Long term debt
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5,844,000
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Fixed assets (property & equipment)
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7,218,000
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Accounts payable
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395,000
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Other assets
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862,000
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Depreciation expense
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422,000
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Retained earnings at beginning of year
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419,600
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Number of shares of common stock
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1,000
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Using the information above:
i. Prepare an income statement in good form
ii. Prepare end of year balance sheet in good form
iii. Calculate net working capital
iv. Calculate the debt ratio
Using an additional column for each financial statement:
v. Prepare a common sized income statement
vi. Prepare a common sized balance sheet
Problem II: Preparing Statement of Cash Flows
Given the following information, prepare a statement of cash flows.
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Dividends
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15
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Increase in common stock
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22
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Decrease in accounts receivable
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24
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Increase in inventories
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35
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Operating income
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80
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Increase in accounts payable
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25
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Interest expense
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25
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Depreciation expense
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12
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Increase in long term debt
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48
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Increase in fixed assets
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33
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Income taxes
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17
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Beginning cash balance
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20
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Assume all amounts are in 000's SAR.
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Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.