STATEMENT OF EARNINGS For the years ending December 31, 2006 and 2007 Exhibit 4 BALANCE SHEET...
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STATEMENT OF EARNINGS For the years ending December 31, 2006 and 2007 Exhibit 4 BALANCE SHEET As at December 31, 2006 and 2007 2007 2006 REVENUE 2007 2006 Mutual fund sales commissions $ 83,740 Mutual fund trailers 191,319 25.2% 57.6% $ 81,688 27.0% 171,462 56.8% ASSETS Life insurance sales 7,258 2.2% 2,653 0.9% Current assets: Other revenue 49.836 15.0% 46,308 Total revenue $ 332,153 100.0% $ 302,110 15.3% 100.0% Cash $ 26,117 Marketable securities 8,544 $ 24,967 9.823 Total current assets $ 34,661 $ 34,790 OPERATING EXPENSES Advertising & promotion $ 11,862 3.6% $ 13,014 4.3% Long-term assets: Delivery 443 0.1% 485 0.2% Office equipment 43,090 38,261 Fund management fees 25,686 7.7% 24,071 8.0% Less: Accum amort., office equipment 27,024 16,066 22.957 15,304 Insurance 2,273 0.7% 2,261 0.7% Interest expense Vehicle 23,905 23,905 2,584 0.8% 2,902 1.0% Meals and travel 8,278 2.5% 15,395 5.1% Less: Accum amort., vehicle 11,953 11.952 9.562 14,343 Office supplies & maintenance 15,476 4.7% 8,844 2.9% Total long-term assets 28,018 29,647 Professional fees 2,605 0.8% 4,299 1.4% Total Assets $ 62,679 Rent 17,460 5.3% 17,367 5.7% $ 64,437 Salaries & wages 106,996 32.2% 99,092 32.8% Utilities Agent error Amortization Education & training Miscellaneous Bank charges 5,116 1.5% 5,305 1.8% LIABILITIES & SHAREHOLDER'S EQUITY 80 0.0% 26,289 8.7% Liabilities: 6,458 1.9% 6,200 2.1% Accounts payable 1,244 0.4% 0.0% Line of credit 1,119 0.3% 977 0.3% Total liabilities $ 1,139 $ 1,234 4,966 3.679 $ 6,105 $ 4,913 102 0.0% 129 0.0% Total operating expenses $ 207,783 62.6% $ 226,630 75.0% Shareholder's Equity Common Stock Net Earnings before tax Income tax $ 124,370 37.4% $ 75,480 25.0% Retained Earnings 21,143 6.4% 12,832 4.2% Total shareholder's equity Net Earnings After Tax $103,227 31.1% $ 62,649 20.7% Total Liabilities & Shareholder's Equity 50,000 6.574 50,000 9.524 56,574 59,524 $ 62,679 $ 64,437 1.Prepare and analyse the company's statement of cash flows for the year ended December 31, 2007.| 2. Prepare and analyse the relevant financial ratios for Best Financial. STATEMENT OF EARNINGS For the years ending December 31, 2006 and 2007 Exhibit 4 BALANCE SHEET As at December 31, 2006 and 2007 2007 2006 REVENUE 2007 2006 Mutual fund sales commissions $ 83,740 Mutual fund trailers 191,319 25.2% 57.6% $ 81,688 27.0% 171,462 56.8% ASSETS Life insurance sales 7,258 2.2% 2,653 0.9% Current assets: Other revenue 49.836 15.0% 46,308 Total revenue $ 332,153 100.0% $ 302,110 15.3% 100.0% Cash $ 26,117 Marketable securities 8,544 $ 24,967 9.823 Total current assets $ 34,661 $ 34,790 OPERATING EXPENSES Advertising & promotion $ 11,862 3.6% $ 13,014 4.3% Long-term assets: Delivery 443 0.1% 485 0.2% Office equipment 43,090 38,261 Fund management fees 25,686 7.7% 24,071 8.0% Less: Accum amort., office equipment 27,024 16,066 22.957 15,304 Insurance 2,273 0.7% 2,261 0.7% Interest expense Vehicle 23,905 23,905 2,584 0.8% 2,902 1.0% Meals and travel 8,278 2.5% 15,395 5.1% Less: Accum amort., vehicle 11,953 11.952 9.562 14,343 Office supplies & maintenance 15,476 4.7% 8,844 2.9% Total long-term assets 28,018 29,647 Professional fees 2,605 0.8% 4,299 1.4% Total Assets $ 62,679 Rent 17,460 5.3% 17,367 5.7% $ 64,437 Salaries & wages 106,996 32.2% 99,092 32.8% Utilities Agent error Amortization Education & training Miscellaneous Bank charges 5,116 1.5% 5,305 1.8% LIABILITIES & SHAREHOLDER'S EQUITY 80 0.0% 26,289 8.7% Liabilities: 6,458 1.9% 6,200 2.1% Accounts payable 1,244 0.4% 0.0% Line of credit 1,119 0.3% 977 0.3% Total liabilities $ 1,139 $ 1,234 4,966 3.679 $ 6,105 $ 4,913 102 0.0% 129 0.0% Total operating expenses $ 207,783 62.6% $ 226,630 75.0% Shareholder's Equity Common Stock Net Earnings before tax Income tax $ 124,370 37.4% $ 75,480 25.0% Retained Earnings 21,143 6.4% 12,832 4.2% Total shareholder's equity Net Earnings After Tax $103,227 31.1% $ 62,649 20.7% Total Liabilities & Shareholder's Equity 50,000 6.574 50,000 9.524 56,574 59,524 $ 62,679 $ 64,437 1.Prepare and analyse the company's statement of cash flows for the year ended December 31, 2007.| 2. Prepare and analyse the relevant financial ratios for Best Financial.
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Answer 1 To prepare and analyze the companys statement of cash flows for the year ended December 31 2007 we need to use the information provided in Ex... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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