Financial Analysis Exercises and Questions Essay

Financial Analysis runs and Questions - Essay ExamplePractice 2-14 Expanded Accounting EquationAssetsLiabilitiesCapital Stock kept up(p) EarningsCase A$20,000$ 8,000$ 8,500$ 3,500Case B$16,000$ 9,000$ 5,0002,000Case C$57,00011,00014,00032,000Case D46,00030,00020,000($4000)Exercise 2-6 offset Sheet PreparationSimon Company Balance Sheet as on celestial latitude 31, 2006AssetsLiabilities and Owners EquityCash$ 179,750LiabilitiesAccounts receivable123,000Accounts payable$62,500Supplies3,750Mortgage payable479,500Land130,000Building418,500Owners equity*313,000 score assets$855,000 Total liabilities and owners equity$855,000 *Owners equity (01/01/06) $210,000Less Distributions to owners during 2006 $(21,750)Add unclutter Income$124,750Owners equity (12/31/06)$313,000Exercise 2-8 Income Statement PreparationBeckstrom Corporation Income Statement For the Year Ended December 31, 2006Revenues$ 384,000Less ExpensesAdvertising expense15,000Supplies expense46,000 Rent expense10,000Utilities e xpense3,000 Salaries expense61,000 Miscellaneous expenses4,400 Income before tax244,600Less Tax (30%)73,380Net income$171,220Exercise 2-9 Cash Flow Computations1.Net cash flow provided (used) by operating activitiesCash receipts fromCustomers$270,000Less Cash payments forWages Utilities Advertising Rent Taxes82,0003,0004,00036,00067,000Net cash flow provided (used) by operating activities$78,000