assignment 2 excel and microsoft due 01/03
Answer all of the following questions/problems and submit them to your mentor in a Word document.
You should use a financial calculator and Excel to solve the problems.
Remember: You must export your table(s) from Excel to Word before submitting your work.
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Discuss the importance of financial statements and how they are used by businesses.
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What is the basic format of the income statement and what is the relevance of the basic categories?
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Cash flows for an organization come from operating activities and investment activities. Discuss the importance of each to the organization.
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The Happy Auto Shop has the following annual information:
|
Gross Sales |
$700,000 |
|
Net sales |
$696,000 |
|
Gross profit |
$448,000 |
What are the shop’s returns and allowances and cost of goods sold?
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Construct a statement of financial position (balance sheet) for the Humperdink family using the following information:
|
cash |
$50 |
|
Checking account |
$2,500 |
|
student loan balance |
$6,000 |
|
stocks and bonds |
$2,600 |
|
savings account |
$5,850 |
|
residence |
$110,000 |
|
automobile |
$12,000 |
|
savings account |
$5,800 |
|
automobile loan balance |
$12,000 |
|
401K retirement account |
$15,000 |
|
furniture, clothing, jewelry |
$8,000 |
|
credit card balance |
$4,000 |
|
mortgage loan balance |
$99,000 |
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What is the purpose of financial statement analysis? How do the three types of financial statement analysis differ from each other and when is each used?
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Samantha Knight is applying for a small-business loan. She provides the bank with the following information:
|
cash in checking accounts |
$5,000 |
|
cash in savings |
$10,350 |
|
home market value |
$145,500 |
|
first mortgage on house |
$25,000 |
|
home equity loan limit |
$70,000 |
|
home equity loan |
$10,000 |
|
automobile market value |
$19,000 |
|
automobile loan outstanding |
$15,000 |
|
credit card debt |
$1,500 |
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Calculate the debt-to-asset ratio.
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Calculate the debt-to-equity ratio.
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What percentage of Samantha’s assets is owned by others?
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Given the profit loss (income statement) and balance sheet for Sam’s Sandwich Delivery (Table 4-8, page 121 of your textbook), answer the following:
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Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.
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Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.
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Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.
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Perform a vertical analysis of the income statement.
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Perform a vertical analysis of the balance sheet.
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Based on your analysis, would you consider investing in Sam’s Sandwich Delivery?
