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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

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