Problem 1 - Financial Statement Analysis
Complete the yellow highlighted cells on the balance sheet and income statement using the following information:
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2010
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2009
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Accounts Receivable
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$1,200,000
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$1,000,000
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Allowance for Doubtful Accounts
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35,000
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50,000
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Income Tax Expense
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100,000
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120,000
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Blue Bill Corporation
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Income Statement
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For the year ended 2010
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2010
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2009
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Net sales
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$4,250,000
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$5,175,000
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Cost of goods sold
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$2,220,000
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$2,605,000
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Gross Profit
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Operating Expenses
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$650,000
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$720,000
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Other Expenses
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$120,000
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$115,000
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Earnings Before Interest and Taxes (EBIT)
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Net interest expenses
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$0
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$15,000
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Income Tax Expense
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Net Earnings
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Earnings per share (1,250 shares issued)
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Blue Bill Corporation
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Balance Sheet
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December 31, 2010
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2010
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2009
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Current assets
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Cash and cash equivalents
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$500,000
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$450,000
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Accounts receivable
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Less: Doubtful accounts
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Inventory
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$2,912,000
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$1,980,000
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Other current assets
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$45,000
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$50,000
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Total current assets
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Net property, plant, and equipment
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$250,000
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$200,000
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Other assets
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$16,000
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$15,000
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Total assets
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Current liabilites
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Accounts payable
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$1,000,000
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$900,000
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Other current liabilities
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$35,000
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$22,000
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Long-term debt
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$900,000
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$930,000
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Equity
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$1,793,000
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Total liabilities and equity
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