The December 31, 2014 and 2013 adjusted trial balances for Sportlife Gym Corporation are shown. Required: 1.
Question:
The December 31, 2014 and 2013 adjusted trial balances for Sportlife Gym Corporation are shown.
Required:
1. Prepare a comparative income statement for 2014 and 2013, a statement of shareholders' equity for 2014, and a comparative classified balance sheet for 2014 and 2013. The income statement should distinguish the gym's core and peripheral results, and group expenses by function (coaching, facilities, and general management). The change in Contributed Capital was caused by the issuance of new shares in 2014.
2. Identify two balance sheet and two income statement accounts that changed significantly in 2014. What might be the cause of these changes?
3. Calculate and interpret the debt-to-assets, asset turnover, and net profit margin ratios in 2014 and 2013. Total assets were $400,000 on December 31, 2012?
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Step by Step Answer:
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh