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Benazir Bhutto Shaheed University Lyari

Advanced Accounting
Assignment # 2
HO, HO, Corporation
Balance Sheet
For the year ended December 31 2000
(In Thousands of Rupees)

Current Assets Liabilities


Cash ? Current Liabilities ?
Account Receivable ? Long Term Debt 8% Interest ?
Inventory ?
Total Current Assets ? Total Liabilities ?
Plant Assets Stock Holder's Equity
Equipment 1,800 Capital Stock Rs.10 Par 1,000
Less: Accumulated Depreciation 300 1,500 Retained Earning 200 1200
Total Assets ? Total Equities ?

HO, HO, Corporation


Income Statement
For the year ended December 31 2000
(In Thousands of Rupees)
Net Sales ?
Cost of Goods Sold ?
Gross Profit (25% of Net Sales) ?
Operating Expenses ?
Operating Income (10% of Net Sales) ?
Interest Expenses 84
Income before Income Tax ?
Income Tax (40% of income before income tax) ?
Net Income 180

Additional Information:
1) The equity ratio 40%, the debt ratio was 60%
2) The only interest expense was on the long term debt.
3) The beginning inventory was Rs.500,000; the inventory turnover was 4.8 times
4) The current ratio was 2 to 1. The quick ratio was 1.07 to 1
5) The beginning balance in accounts receivable was Rs.280,000 the account receivable turnover for the
year was 12.8 times. All sales were made on account

Required:
a) Complete the Financial Statements by use of available information
b) Give all computations of amounts appearing in the Balance Sheet and Income Statement