Task: Classified Financial Statement Preparation and Analysis
Problem: Jimenez Company sells outdoor sports equipment. At the December 31, 2009, year end, the following financial information was available from the income statement: administrative, $ expenses, 80,800; cost of goods sold, 350,420; interest expense, $22,640; interest income, $2,800; net sales, $714,390; and selling expenses, $ 220,200.
The following information was available from the balance sheet ( after closing entries were made): accounts payable, $32,600; accounts receivable, $104,800; accumulated depreciation- delivery equipment, $88,500; inventory, $ 136,540; investment in securities (short term), $39,600; lone-term notes payable, $ 100,000; C. Jimenez, Capital, $359,300 (ending balance); notes payable (short-term),$50,000; prepaid expenses (short-term), $5,760; and store fixtures, $141,620.
Total assets and total owner's equity at December 31, 2008, were $524,400 and $ 376,170, respectively, and owners withdrawals for the year were $60,000. The owner did not make any additional investments in the company during the year.
Required
1. From the information above, prepare
(a) an income statement in single-step form,
(b) a statement of owner's equity,
(c) a classified balance sheet.
2. From the statement you have prepared, compute the following measures:
(a) working capital and current ratio (for liquidity); and
(b) profit margin, asset turn over, return an asset, debit to equity ratio, and return on equity (for profitability)