P2-10.The financial statements of Access Corporation for the year ended December 31, 2012, follow.
P2-10.The financial statements of Access Corporation for the year ended December 31, 2012, follow.
Access Corporation
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowIncome Statement
For the Year Ended December 31, 2012
__________________________________________________________________________________________________________ .
| Sales revenue | $160,000 | |
| Less: Cost of goods solda | 106,000 | |
| Gross profit | $ 54,000 | |
| Less operating expenses: | ||
| Selling expense | $16,000 | |
| General and administrative expense | 10,000 | |
| Lease expense | 1,000 | |
| Depreciation expense | 10,000 | |
| Total operating expenses | 37,000 | |
| Operating profit | $17,000 | |
| Less: Interest expense | 6,100 | |
| Net profit before taxes | $10,900 | |
| Less: Taxes @ 40% | 4,360 | |
| Net profits after taxes | $ 6,540 |
aAccess Corporation’s annual purchases are estimated to equal 75 percent of cost of goods sold.
Access Corporation
Balance Sheet
As of December 31, 2012
| Assets | Liabilities and Stockholders’ Equity | ||
| Cash | $ 500 | Accounts payable | $ 22,000 |
| Marketable securities | 1,000 | Notes payable | 47,000 |
| Accounts receivable | 25,000 | Total current liabilities | $ 69,000 |
| Inventories | 45,500 | Long-term debt | 22,950 |
| Total current assets | $ 72,000 | Total liabilities | $ 91,950 |
| Land | $ 26,000 | Common stock a | 31,500 |
| Buildings and equipment | $ 90,000 | Retained earnings | 26,550 |
| Less: Accumulated depreciation | 38,000 | Total liabilities and stockholders’ | |
| Net fixed assets | $ 78,000 | equity | $150,000 |
| Total assets | $150,000 | ||
a The firm’s 3,000 outstanding shares of common stock closed 2012 at a price of $25 per share.
a. Use the preceding financial statements to complete the following table. Assume that the industry averages given in the table are applicable for both 2011 and 2012.
b. Analyze Access Corporation’s financial condition as it relates to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market value. Summarize the company’s overall financial condition.
The post P2-10.The financial statements of Access Corporation for the year ended December 31, 2012, follow. appeared first on Infinitessays.org.
