1-3A Kartik Bhamidipati

Income Statement
Revenues
Service Revenue 7,500 $
Expenses
Advertising expense 400 $
Supplies Expense 1000
Maintenance and Repairs Expense 600
Utilities Expense 300
Salaries and wages expense 1400
Total Expenses 3700
Net Income 3,800 $
Retained Earnings Statement
RE, June 1 - $
Add: Net Income 3800
Less: Dividends 1400
2400
Balance Sheet
Assets
Cash 4,600 $
Accounts Recievable 4000
Supplies 2400
Equipment 26000
37000
Liabilities
Notes Payable 12,000 $
Accounts Payable 500
12500
Shareholder's Equity
Retained Earnings 2,400 $
Common Stock 22,100
24500
P1-3B
1-3A
Income Statement
Revenues
Service Revenue 10,400 $
Expenses
Advertising expense 800 $
Maintenance and Repairs Expense 2900
Insurance Expense 400
Salaries and wages expense 2000
Total Expenses 6,100 $
Net Income 4,300 $
Retained Earnings Statement
RE, June 1 - $
Add: Net Income 4,300 $
Less: Dividends 1700
2,600 $
Balance Sheet
Assets
Cash 15,800 $
Accounts Recievable 6200
Equipment 56000
78,000 $
Liabilities
Notes Payable 28,000 $
Accounts Payable 2400
30,400 $
Shareholder's Equity
Retained Earnings 2,600 $
Common Stock 45,000
47,600 $
P1-4B
Statement of Cash Flows
Cash Flow from Operating Activities
Cash received from customers 172,000 $
Cash paid to suppliers (154,000) $
Net cash from operating 18,000 $
Cash flow from Investing Activities
Cash paid to purchase equipment (30,000) $
Net cash from investing (30,000) $
Cash flow from Financing Activities
Cash received from bonds payable 40,000 $
Cash dividends paid (6,000) $
Net cash from financing 34,000 $
Cash at end of year 22,000 $
E2-7
a) EPS= (Net Income- Preferred Div)/Average # of Shares outstanding
In 2007, EPS was 0.783
In 2008, EPS was 1.012
b) Profitability seemed to have increased
c) Common stock dividends would not affect calculation, preferred stock div. would lower EPS
P2-5A
a) Working Capital (CA-CL) 263,400 $
Current Ratio (CA/CL) 2.347315
FCF 67800
Debt/Total Assets 0.382421
EPS 3.062
b) Liquidity increased, Solvency Increased and Profitability Decreased
P2-6A 2011 2012
a) EPS 2 2.1212121
b) Working Capital (CA-CL) 85000 113000
c) Current Ratio (CA/CL) 2.214285714 2.5066667
d) Debt/Total Assets 0.233577 0.203947
e) FCF 3000 17000
f) Profitability increase, liquidity increase and solvency increase
P2-2B
Income Statement
Revenues
Service Revenue 53,000 $
Expenses
Insurance Expense 1,800 $
Depreciation Expense 4300
Maintenance and Repairs Expense 2600
Utilities Expense 2100
Salaries and wages expense 36000
Total Expenses 46,800 $
Net Income 6,200 $
Retained Earnings Statement
RE, June 1 14,000.00 $
Add: Net Income 6,200 $
Less: Dividends 2600
17,600.00 $
Balance Sheet
Assets
Cash 5,100 $
Accounts Recievable 4900
Prepaid Insurance 1400
Equipment 31000
Accumulated Depreciation (8,600) $
33,800 $
Liabilities
Salaries and Wages Payable 2,000 $
Accounts Payable 8200
10,200 $
Shareholder's Equity
Retained Earnings 17,600 $
Common Stock 6,000
23,600 $