Institution Affiliated

InstitutionAffiliated:

Datesubmission:

QuarterlyReport Analysis

  1. Cash

  1. Change in cash = $19,478 – $13,844

=$5,634

  1. Cash generated from operating activities = $33,722

Majorsource of cash = Purchase from sales of marketable securities with$24,166

  1. Greatest cash outflow = Purchase of marketable securities

Largestcomponent of the outflow = corporate securities

  1. Sales

  1. Region and product segment that had greatest increase on a percentage basis

Regions

Difference in Net sales

Percentage

America

5,777

33.97%

Europe

2,879

16.93%

Greater China

6,648

39.09%

Japan

403

2.37%

Rest of Asia Pacific

1,298

7.63%

Total

17,005

GreaterChina has the greatest increase of 39.09%

  1. Greatest decrease = $2.37% from Japan.

  1. Income state

  1. Provision for income taxes in fourth quarter = $6,392

Percentageof net sales =$6,392/ $74,599 * 100%

= 8.57%

  1. Closing entry for other income = $24,246

  1. Ratio Analysis

  1. Total asset turnover = Total assets/ Net sales

=261,894/ 74,599

=3.511

  1. Net profit margin = Net profit/ Net sales

=18,024/ 74,599

=0.242

  1. Current ratio = Current assets/ current liabilities

=83,403/ 73,611

=1.13

  1. The company has performed better as we can observe an increase in most of the entries. Profitability of the company has increased as well as liquidity level. The company can easily offset if current debt despite an increase in its current liabilities.

Comprehensivequestion

  1. Journal entries

  1. Cash ……………………………………………. $15,000

Notespayable…………………………………………..$13,800

Intereston notes payable……………………………….$1,200

  1. Land………………………………………….. $13,000

Cash…………………………………………………….$13,000

Landpurchased via cash payment

  1. Accounts receivable …………………………$52,000

Cash…………………………………………$163,000

Servicerevenue……………………………………..………$215,000

Revenuesearned partly in credit and in cash

  1. Cash………………………………………………$4,000

Additionalpaid-incapital………………………………………….……$4,000

Additionalshares sold to the public

  1. Expenses………………………….$114,000

Accountspayable……………………………………..…$20,000

Cash………………………………………………………$94,000

Expensespaid in cash and on credit

  1. Cash……………………………………..$34,000

Accountsreceivable…………………………………. $34,000

Collectedaccounts receivables

  1. Other assets…………………………$15,000

Cash………………………………………………….$15,000

Purchaseof other assets

  1. Supplies……………………………………$27,000

Cash…………………………………………………….$27,000

  1. Accounts payable……………………….$26,000

Cash……………………………………………………….$26,000

Paidaccounts payables

  1. Cash………………………………………..$11,000

Servicerevenue…………………………………………..$11,000

Theremainder will be distributed prorata over the next 2 years equally.

  1. Retained earnings………………………$25,000

Cash…………………………………………………$25,000

Declareddividends

  1. Supplies expenses……………………….$9,000

Supplies………………………………………………….$9,000

Closingsupplies at $18,000

  1. Depreciation……………………………………………$10,000

Equipment…………………………………………………………..$10,000

Depreciationon the equipment

  1. Interest on notes payable……………………………..$1,200

Notespayable………………………………………………………$1,200

  1. Wage expense……………………………………………$16,000

Accruals…………………………………………………………$16,000

Wagesnot yet paid

  1. Income tax expense…………………………………..$11,000

Retainedearnings………………………………………$11,000

B)Income statement and balance sheet

i)Income statement for the year ended December 31st2015

Details

$

$

Service revenues

34,000

Cost of sales

Opening stock

13,000

Purchases

27,000

less: Supplies expenses

(9,000)

Less: Closing stocks

(18,000)

(13,000)

Gross profit

21,000

Expenses

Interest expenses

1,200

Depreciation expenses

10,000

Total expenses

(11,200)

Net profit

9,800

Retained earnings b/f

5,000

Retained earning

14,800

ii)Balance sheet as at 31stDecember 2015

Details

$

$

Non Current Assets

Land

13,000

Equipment

78,000

Other assets

22,000

Total Fixed assets

113,000

Current Assets

Cash

42,000

Accounts receivables

23,000

Total Current assets

65,000

Total Assets

178,000

Current Liabilities

Wage payable

16,000

Accounts Payable

46,000

Total Current Liabilities

62,000

Long-term notes payable

15,000

Equity

Common stock

4,000

Additional paid-in stock

84,000

Retained earnings

9,800

Surplus

3,200

Total equity

101,000

Equity and liability

178,000

  1. Ratio analysis

  1. Current ratio = Current assets/ current liabilities

=65,000/62,000

=1.05

  1. Net profit margin = Net profit/service revenue

=9,800/34,000

=0.288

  1. Earnings per share = Net income/ Common stock

=9,800/ (4,000+84,000)

=0.11

References

Abraham, J. W. (2010). Principles of Financial Accounting. Australia: John Wiley &amp Sons.

Apple Inc. (n.d.). Apple Inc Financial Statements. Retrieved from Sec.gov: https://www.sec.gov/Archives/edgar/data/320193/000119312515023697/d835533d10q.htm

Beyer, S. (2010). International Corporate Finance- Impact of Financial Ratios. Australia: John Wiley &amp Sons.

Investopedia US. (2013). Efficiency Ratios. Retrieved from Investopedia: http://www.investopedia.com/terms/e/efficiencyratio.asp

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