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    Test 2 Financial - Analysis (Bervie Rondonuwu)

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    Bervie Rondonuwu
    A&B Retail Co. issued shares and obtained a bank loan to purchase land, buildings, equipment, and inventory. They sold 90% of inventory at an 80% profit margin, with 2% returns and 2.5% operating expenses as a percentage of sales. They paid dividends of $1 per share and the tax rate was 35%. The financial statements and ratios need to be completed to analyze A&B Retail's financial performance.

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    Test 2 Financial - Analysis (Bervie Rondonuwu)

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    Bervie Rondonuwu
    23 views5 pages
    A&B Retail Co. issued shares and obtained a bank loan to purchase land, buildings, equipment, and inventory. They sold 90% of inventory at an 80% profit margin, with 2% returns and 2.5% operating expenses as a percentage of sales. They paid dividends of $1 per share and the tax rate was 35%. The financial statements and ratios need to be completed to analyze A&B Retail's financial performance.

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    Test 2 Financial.analysis (Bervie Rondonuwu)

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    A&B Retail Co. issued shares and obtained a bank loan to purchase land, buildings, equipment, and inventory. They sold 90% of inventory at an 80% profit margin, with 2% returns and 2.5% operating expenses as a percentage of sales. They paid dividends of $1 per share and the tax rate was 35%. The financial statements and ratios need to be completed to analyze A&B Retail's financial performance.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    23 views5 pages

    Test 2 Financial - Analysis (Bervie Rondonuwu)

    Uploaded by

    Bervie Rondonuwu
    A&B Retail Co. issued shares and obtained a bank loan to purchase land, buildings, equipment, and inventory. They sold 90% of inventory at an 80% profit margin, with 2% returns and 2.5% operating expenses as a percentage of sales. They paid dividends of $1 per share and the tax rate was 35%. The financial statements and ratios need to be completed to analyze A&B Retail's financial performance.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Test 2- Financial Management Name: Bervie Fransel Rondonuwu

    A& B Retail Co. started the company issued 10000 shares par $16 and get a 20 year bank loan i=7% at $380000
    The company acquired Land $50000 and Building $350000 (useful year 35). An Equipment $80000 (useful year 10) was also bought.
    Inventory of $300000 was purchased 40% on credit. 90% invenstory were sold at 80% proift margin. 2% of Sales were returned
    as Sales Return & Allowance . Other Operating expenses is 2.5% of Sales. 1.5% account Receivable was considered uncollectible.Tax rate 35%.
    A&B paid dividend $1/share.

    You are required to complete the following Trial balance, Income Statement, Balance Sheet and Financial Ratio analysis. Also prepare a short conclusion
    Trial Balance Income Statement
    Cash Sales
    Accounts Receivable Returns and Allowances
    Allowance for Bad Debts Net Sales
    Inventory $30,000 Cost of Goods Sold
    Land $50,000 Gross Profit
    Building $350,000 Operating Expenses
    Accum. Depreciation, Building $10,000 Selling Expenses
    Equipment $80,000 Depre. Exp.-Store Equipment
    Accum. Depreciation, Equipment $8,000 Doubtful Account Expense
    Accounts Accounts Payable $120,000 Total Selling Expenses
    Interest Payable $26,600 General and Administrative Expenses
    Loan Payable $380,000 Depreciation Expense-Building
    Common Stock par $16 $160,000 Total General and Administrative Expenses
    Dividends $10,000 Total Operating Expenses
    Sales $486,000 Income from Operations
    Cost of Goods Sold $270,000 Other Revenue and Gains
    Sales Return and Allowance $9,720 Interest Expense
    Depreciation Expense $18,000 Other Operating Expenses
    Interest Expense $26,600 Total other Revenue and Gains
    Other Operating Expenses $12,150 Income before tax
    Doubtfull Account Expense Income Tax
    Totals Net Income
    23 points
    Warning!!! Mohon bagian ini jangan di edit/delete/utal-atik
    Your points
    Trail Income Balance Financial Analysis Total
    Balance Statement Sheet Ratios
    17 11 12 0 0 50%
    as also bought.

    ncollectible.Tax rate 35%.

    s. Also prepare a short conclusion about A&B Retail financial performance.


    ment Balance Sheet Ratio analysis
    $486,000 Assets Liquidity Ratio
    $9,720 Current Assets 1 Current Ratio
    476,280 Cash 2 Acid-test (Quick) Ratio
    270,000 Accounts Receivable, net Financial Leverage (Debt) Ratio
    206,280 Inventory $30,000 3 Debt to Equity Ratio
    Total Current Assets 4 Debt to Total Assets Ratio
    Plant Assets Coverage Ratio
    8,000 Equipment and Buildings $430,000 6 Interest coverage ratio
    Less: Accumulated depreciation $18,000 Activity Ratio
    Equipment and Buildings, net $412,000 7 Receivables turnover in days (RTD)
    Land $50,000 8 Payable turnover in days
    10,000 Total plant assets $462,000 9 Inventory turnover
    $10,000 Total Assets Profitability Ratios
    10 Gross Profit Margin
    Liabilities 11 Net profit margin
    Current Liabilities 12 Return on Investment (ROI)
    26,600 Accounts Payable $120,000 13 Return on Equity (ROE)
    12,150 Interest Payable $26,600 12 points
    $38,750 Total current liabilities $146,600
    Long-term Liabilities
    Note Payable, 20 year, 7% $380,000 total debt 526600
    Total Liabilities $526,600
    18 points Equity
    Common Stock par $16 $160,000
    Retained Earnings
    Total Equity
    Total Liability & Equity
    19 points
    Industry Prepare a short analysis about ABC preformance campares to industry:
    4.2
    2.5

    2
    0.5

    days 40
    days 36
    4

    60%
    25%
    18%
    44%
    12 points 10 points

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