a. Prepare an income statement, statement of retained earnings and a balance sheet for each year...
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a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. Assess the company's comparative results for the two-year period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you invest more money in the company? Briefly explain your decisions. Retained earnings, Dec. 31 Equipment Payroll expense Cash Notes payable Retained earnings, Jan. 1 Common stock Inventory Cost of Goods Sold Accounts receivable Revenues Dividends Administrative expenses Accounts payable 2019 ? 69,097 94,200 24,320 18,960 ? 36,000 26,200 242,900 2,430 370,305 5,200 13,250 11,830 2018 40,502 58,940 86,500 19,650 19,208 22,462 36,000 25,120 ? ? 360,870 4,800 12,630 10,600 a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. Assess the company's comparative results for the two-year period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you invest more money in the company? Briefly explain your decisions. Retained earnings, Dec. 31 Equipment Payroll expense Cash Notes payable Retained earnings, Jan. 1 Common stock Inventory Cost of Goods Sold Accounts receivable Revenues Dividends Administrative expenses Accounts payable 2019 ? 69,097 94,200 24,320 18,960 ? 36,000 26,200 242,900 2,430 370,305 5,200 13,250 11,830 2018 40,502 58,940 86,500 19,650 19,208 22,462 36,000 25,120 ? ? 360,870 4,800 12,630 10,600
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b From the poit of view of bank and investor the performance is not good a... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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