Autosave . OFF Home Insert Draw f" v CalierBou. Paste 6 B I Q Page 2 of 7 873 words B New FIN2305 - Assignment 1 - Conducting Financial Analysis Saved to my Mac Design Layout References Mailings Review View 9 Tell me :1 Comments / Editing 6 Share V 14 V A A A3 V A0 AaBchDdEe AaBchDdEe AaBb1 AaBch AaBchD( > Q Q g v ab X, X; A v p v A v Normal N0 Spacing Heading 1 Heading 2 Heading 3 Spills: Dictate Sensmwty Editor 1, Your new boss Wally Oliver is pleased with your work! He has given you another assignment. It is Dec 31, and Wally asks you to create nancial statements for a new company owned by Lexi Holding, The company, called Madi Sporting Goods, started operations Jan 1, 2g and sells sports equipment. Given that you want to keep your job 7 and that you like doing this stuff - you agree. Through discussions with Wally and documents he provides to you, you get much information This information is listed below. Wally asks that you compile an income statement and balance sheet, 0 Sales were $1,000,000 in 2015 0 Gross prot margin was 60% 0 Operating margins were 12% o The Bank of Toronto provided a loan on Jan 1, & worth $300,000, The annual interest is 8% and is compounded annually. Interest only payments are needed until the loan is due in 10 years, where a balloon payment for the full balance must be paid, 0 The combined federal and provincial tax rates is 27% o The ending cash balance in Madi Sporting Goods is 200,000 0 Accounts Receivables is 10% of sales 0 Inventory is 15% of sales 0 Accounts Payable is 5% of sales o Accrued expenses payable is 5.5% of sales 0 Capital equipment purchases were made at the start of the yearl These total $50,000. These depreciate at 10% per year 0 Lexi Holding's owner, Mr, X, provided all other capital in the form of equity nancing o Wally asks you to gure out his SG&A (Selling General and Administrative expenses), (Income Statement 10 marks, Balance Sheet 15 marks) [IX English (Canada) 7?)? Accessibility: Investigate =__= 5 - + 124% AutoSave Ow B New FIN2305 - Assignment 1 - Conducting Financial Analysis Saved to my Mac Home Insert Draw Design Layout References Mailings Review View 9 Tell me O Comments aming a Share f\" v Times New.\" v 12 v AA A\" As v A0 E V AaBbCCDdEe AaBchDdEe A Bb' A BbC A BbC D 0 - a a c a c > M v page 6 B I U v ab x2 x7 A V p v A v Normal NoSpscing Headingl Headingz HeadingS Styles Dictate Sensiuwty Editor _ _ Pane 2' It is December 31, M and Wally needs your help again, He wants you to create his Income Statement for 20161 Please use the following information to create the 2016 Income Statement. 2016 sales were 125% of 2015 sales Gross prot margin was 55% Operating prot margins were 15% Interest expense fell to 7%, given a change in interest rates The tax rate was 30% 00000 (10 marks) 3' Wally says that Lauren created the Balance Sheet for December 31, 2016. Wally asks you to use the Income Statement you created (in 2 above) and the Balance Sheet Lauren created (in appendix Bl) to complete a cash ow statement You agree to create a cash ow statement for 2016, Note you will need to gure out how much was paid out to Lexi Holdings as a dividend Finally, he asks you to share any observations you might have on Madi Sporting Goods based on what you have put togethert (15 marks) Submission Please submit your completed assignment by the due date to this submission folder. Assessment Criteria Please see the attached rubric for the grading criteria. Page 3 of 7 873 words U3 English (United States) 7?; Accessibility: Investigate I 1 Focus : Ea ='_= E - +124% AutoSave OFF A A CG9 ... New FIN2305 - Assignment 1 - Conducting Financial Analysis - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View ? Tell me Comments Editing Share Calibri (Bo... v 14 A A Aav A AaBbCcDdEe AaBbCcDdEe AaBb( AaBbCc AaBbCcDC Paste BIUvab X X A DAY Normal No Spacing Heading 1 Heading 2 Heading 3 Styles Dictate Sensitivity Editor Pane ALGONQUIN Centre for Continuing COLLEGE | & Online Learning Appendix B1: Madi Sporting Goods Balance Sheet - As at December 31, 2016 Current Assets Cash 200,000 AR 125,000 Inventory 187,500 Total Current Assets 512,500 Fixed Assets 45,000 Acc Dep 5,000 Net Fixed Assets 40,000 Total Assets $ 552,500 Current Liabilitys AP 62,500 Accrued Expenses Payable 68,750 Total Current 131,250 Long Term Liabilities Bank Loan 300,000 Total LT Liabilities 300,000 Total Liabilities 431,250 Total Equity 121,250 Total Liabilities + Equity $ 552,500 Page 6 of 7 873 words English (Canada) Accessibility: Investigate Focus E + 124%