Type of questions :
– Income Statement
– The ending retained earnings balance
– The Balance Sheet
– The Financial Ratios – DONT forget to see Ratios sheet for formulas:
– Fill in the Blank
please full answer for all questions and I need it in Word +Excel format
Using the below account balances for TTPD, Inc. and in this order:
1 Prepare an Income Statement in proper format for the Year Ended 12/31/23.
2 Calculate the ending retained earnings balance as of 12/31/23.
3 Prepare the Balance Sheet in proper format as of 12/31/23.
4 Calculate the 10 financial ratios listed at the bottom of this page – show your work.
** Answer the questions listed at the bottom of this page.
12/31/23
Accounts Payable
Accounts Receivable
Additional Paid-in Capital
Automobiles
Vehicles
Buildings
Cash
Coal
Cost of Goods Sold (COGS)
Common Stock $1 par, 400,000 shs authorized, 30,000 shs issued, 25,000 shs outstanding
Computer Software
Conferences & Travel Expense
Depreciation, Depletion & Amortization Expense
Dividends Paid
Gain on Sale of Assets
General & Administrative Expense
Goodwill
Income Tax Expense
Insurance Expense
Interest Expense
Interest Income
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
50,000
60,000
10,000
50,000
40,000
250,000
150,000
20,000
600,000
30,000
40,000
10,000
15,000
40,000
5,000
100,000
120,000
30,000
60,000
7,000
2,000
Interest Payable
Land
Loss on Sale of Assets
Accumulated Amortization
Accumulated Depletion
Accumulated Depreciation
Long-Term Bonds Payable
Long-Term Note Payable
Inventory
Net Sales Revenue
Patents
Preferred Stock $1 par, 15,000 shs outstanding
Prepaid Insurance
Equipment
Payroll Taxes Expense
Retained Earnings (1/1/23 balance = $90,000)
Selling & Advertising Expense
Short-Term Investments
Short-term Note Payable
Timber
Trademarks
Treasury Stock 5,000 shs
Utilities Expense
Wages Expense
Wages Payable
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
20,000
130,000
2,000
– 11,000
– 3,000
– 110,000
195,000
175,000
50,000
1,399,000
35,000
15,000
15,000
125,000
45,000
?؟
12,000
25,000
65,000
8,000
6,000
– 5,000
20,000
130,000
20,000
5
6
7
8
9
10
11
12
13
14
Financial Ratios (show your work) – See Ratios sheet in Canvas for formulas:
Earnings per Share (EPS); (Com. Stock outstanding 1/1/23 = 30,000 shs)
Return on Investment (ROI); (Total Assets 1/1/23 = $900,000)
Return on Equity (ROE); (Total Equity 1/1/23 = $400,000)
Working Capital
Current Ratio
Debt to Equity Ratio
Inventory Turnover (Inventory Bal on 1/1/23 = $40,000)
Accounts Receivable Turnover (Acct Rec Bal on 1/1/23 = $66,000)
Price/Earnings Ratio (market price per share = $50)
Gross Profit Ratio
Fill in the Blank:
15 What are the 3 types of inventory accounts a manufacturing company might show on its balance sheet:
16 When a bond’s stated rate is lower than the market rate, the bond is issued at a:
17 Name the 3 sections of the Cash Flow Statement:
18 Decreases in assets, increases in liabilities, & increases in equity all have what effect on cash (+ or -)?
19 Which cost allocation method is used with Natural Resources?
20 Which inventory costing method (FIFO or LIFO) results in lower cost of goods sold?
21 The number of shares of stock issued less the number of shares of treasury stock is called:
22 The balance sheet equation (accounting formula) is represented by:
23 Money owed to an organization for products or services it sold to its customers but has not yet received cash is called:
24 The type of stock that has liquidation preference but no voting rights is called:
25 Which cost allocation method is used with Intangible Assets?
26 Money owed to a vendor for supplies or services it received but has not yet paid for is called:
27 Sales revenue less cost of goods sold equals what?
28 If a loss is both probable and estimable, what must be booked/recorded on the balance sheet?
29 Deposits in transits and outstanding checks are items found on what?
30 Beginning inventory + production – cost of goods sold = what?
31 Proceeds from the sale of a building would belong on which section of the Cash Flow Statement?
32 Gross margin less operating expenses equals what?
33 The safeguarding of assets including security cameras, warehouse locks, and computer passwords are examples of what?
34 Retained earnings can only be affected by adding net income and subtracting what?
Ratios
Liquidity Measures:
•
•
•
Working Capital = Current Assets – Current Liabilities
Current Ratio = Current Assets / Current Liabilities
Acid-Test (Quick) Ratio = (Current Assets – Inventory) / Current Liabilities
Activity Measures:
•
•
•
•
•
•
Asset Turnover = Sales / Avg. Total Assets
Accounts Receivable Turnover = Sales / Avg. Total Accts. Rec.
Plant & Equipment Turnover = Sales / Avg. Total Plant & Equipment
Inventory Turnover = COGS / Total Avg. Inventory
# of Days’ Sales in Accts. Rec. = Accts. Rec. / Avg. Day’s Sales
o Avg. Day’s Sales = Annual Sales / 365
# of Days’ Sales in Inventory = Inventory / Avg. Day’s COGS
o Avg. Day’s COGS = Annual COGS / 365
Profitability Measures:
•
•
•
•
•
•
•
Return on Investment (ROI) = Margin x Asset Turnover
o or Net Income/Sales x Sales/Avg. Total Assets
Return on Equity (ROE) = Net Income / Avg. Total Owners’ Equity
Price/Earnings Ratio (PE Ratio) = Market price per share / EPS
Dividend Yield = Annual dividend per share / Market price per share
Dividend Payout Ratio = Annual dividend per share / EPS
Preferred Dividend Coverage = Net Income / Preferred Div. Requirement
Earnings per Share = Net income / Avg. Common Stk. Shares Outstanding
Financial Leverage Measures:
•
•
•
Debt Ratio = Total Liabilities / Total Liabilities + Owners’ Equity
Debt/Equity Ratio = Total Liabilities / Total Owners’ Equity
Times Interest Earned = Earnings before Interest & Taxes / Interest Expense
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