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Balance sheet and income statement relationships across five years Compute the missing values for the following...

Question

Balance sheet and income statement relationships across five years Compute the missing values for the following...

Balance sheet and income statement relationships across five years

Compute the missing values for the following chart and analyze the financial performance and position of this company. The first year of operations is 2005.

2011

2010

2009

2008

Assets:

Cash

$500

$2410

$ 300

$ 300

Accounts receivable

700

?

300

200

Inventory

400

400

?

500

Land

4110

400

21111

100

Property. plant, and equipment (net) liabilities and shareholders" equity:

800

700

600

700

Accounts payable

?

500

3110

200

Bonds payable

700

800

64141

500

Contributed capital

600

600

4110

?

Retained earnings

600

300

800

400

Sales

?

700

1.100

1.000

Expenses

(600)

?

?

(400)

Net income

?

(100)

400

?

Dividends

200

7

7

7

Answers

Missing values are highlighted in solution. Sales are growing up, company is expanding its fixed assets in form of land and inventory. Account payable is highest2011 2010 2009 2008! Assets: Cash Account Receivable Inventory Land Pro Liabilities: Accounts pavable Bonds payable Contributed capital Retained earnings Sales Expense Net Income Dividend 2410 1710 500 700 400 4110 800 300 300 400 49850 400 21111 600 300 200 500 1001 700 perty plant & Equipments 700 4610 700 600 600 1200 -600 600 200 3110 80064141 4110 800 1100 700 400 500 600 300 700 800 100 7 200 500 700 400 1000 -400 600 71 in 2011. Highest dividend in 2011 is showing the better position of firm.


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