a. Construct a personal income statement for the Humperdinck family using the following information: salaries, $42,000; mortgage payment, $7,980; food, $2,400; interest income, $150; transportation, $1,200; dividend income, $190; automobile payment, $3,060; clothes and personal, $2,000; student loan payment, $1,700; property taxes, $1,100; utilities, $3,000; insurance, $2,100; income taxes $9,700; and recreation and vacation, $2,000. What is the family's disposable income?
b. Construct a statement of financial position (balance sheet) for the Humperdinck family using the following information: cash, $50; checking account, $2,500; student loan balance, $6,000; stocks and bonds, $2,600; savings account, $5,850; residence, $110,000; automobile, $12,000; savings account, $5,800; automobile loan balance, $12,000; 401K retirement account, $15,000; furniture, clothing, jewelry, $8,000; credit card balance, $4,000; and mortgage loan balance, $99,000.
c. Construct an income statement using the following information: net sales, $500,000; salaries, $100,000; rent, $24,000; COGS, $250,000; utilities, $25,000; payroll taxes, $25,000; insurance, $12,000; and interest expense, $5,450. Make sure that you include gross profit, operating expenses, and net profit.
d. George’s Pizzeria has the following information as of December 31,2012: cash, $2,000; pizza ovens, $25,000; furniture, $12,500; accounts payable, $3,500; notes payable, $12,500; accumulated depreciation, $10,000; wages payable, $1,500; taxes payable, $2,500; equipment loan, $18,000. Construct a balance sheet for George. Do you think he has a problem with his current balance sheet? If so, what is it? Yes, he has a negative equity of $8,500.
e. State the stockholder’s equity of the Alphabet Corporation if it has a current net profit of $1,500,000, beginning-of-the-period retained earnings of $3,675,000, 1 million shares of common stock issued at a par value of $1 per share, and paid-in capital in excess of par of $12.50 per share?
f. State your current cash balance if you have the following information: total cash receipts of $624,000; a cash balance at the end of last year of $60,000; total cash payments of $540,000; cash outflow from investing activities of $100,000; and cash inflows from financial activities of $172,000.

  • CreatedJuly 31, 2015
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