*Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys.

Problem 2-1: Preparing Financial Statements

Information below is for Warner Manufacturing, Inc. for the year ended December 31, 20x1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated.

Using the information below:

1. Prepare an income statement with the proper title

2. Prepare end of year balance sheet with the proper title

3. Calculate net working capital

4. Calculate the debt ratio

*Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys.

DATA
Depreciation expense		66,000
Cash		220,000
Long-Term Debt		330,000
Net Sales		615,000
Accounts payable		102,000
Marketing and general and administrative expenses		79,000
Buildings and Equipment		895,000
Notes payable		7,5000
Accounts receivable		156,000
Interest expense		4,750
Accrued expenses		7,900
Common Stock		289,000
Cost of Goods sold		297,000
Inventory		99,300
Taxes		67,300
Accumulated Depreciation		-26,3000
Prepaid expenses		14,500
Taxes payable		55,000
Retained earnings		262,900