H ASF department store has advertised for finance students to work in its Finance department during the
Question:
HASF department store has advertised for finance students to work in its Finance department during the summer and you have applied for the job. To determine whether you are familiar with the content of classified financial statement. Use the following data provided by the controller of ASF. The data are derived from the store s’ operation in the year ended December 31 2011
Net sales 500,000
Net income 110,000
Current liabilities 12,000
Selling expenses 11,000
Long term liabilities 38,000
Total assets ?
Stock holder equity (equal to total liabilities) ?
Gross Profit ?
Cost of goods sold ?
Current assets 47,000
Income tax 90,000
Operating income ?
General and administrative expense 24,000
Plant and equipment 133,000
Other assets ?
Required
1 Using the above data prepares the following
- Classified balance sheet (04.5 marks)
- Multiple – step income statement (04.5 marks)
2 Compute at year ended the company (2.5marks)
- Current ratio
- Working capital
- Gross profit rate
- Return on total assets
- Return on shareholder equity
Expert Answer:
Based on the provided data I will prepare the classified balance sheet and multiplestep income state... View the full answer
Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets
ISBN: 978-0078024061
5th edition
Authors: Frederick S. Hillier, Mark S. Hillier
