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Chapter 14 - Practice

The document provides a comprehensive financial overview including an income statement showing a net profit of 15%, a cash flow statement indicating a net cash flow of $42,500, and a balance sheet with total assets of $2,449,000 and total liabilities of $1,193,000. It also includes a bank reconciliation confirming an adjusted check register balance of $25,876.30. Overall, the financials reflect a profitable and stable business position.

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5 views5 pages

Chapter 14 - Practice

The document provides a comprehensive financial overview including an income statement showing a net profit of 15%, a cash flow statement indicating a net cash flow of $42,500, and a balance sheet with total assets of $2,449,000 and total liabilities of $1,193,000. It also includes a bank reconciliation confirming an adjusted check register balance of $25,876.30. Overall, the financials reflect a profitable and stable business position.

Uploaded by

hoangmai8206
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

INCOME STATEMENT

Category Amount ($) % of Revenue

Total Revenue 150,000 100%

Cost of Goods Sold (COGS) (60,000) 40%

Gross Earnings 60%

Business Expenses:

- Marketing Costs 4,000

- Insurance Fees 6,500

- Miscellaneous Costs 800

- Employee Wages 40,000

- Payroll Deductions 3,200

- Utility Bills 5,000

Total Business Expenses

Net income from operations 20%

Other Financial Items:

- Investment Earnings 1,500

Pre-Tax Profit 21%

- Tax Expenses (9,500)

Final Net Profit 15%


CASH FLOW STATEMENT

Cash Inflows Amount ($)

Customer Payments 10,000

Credit Sales Collections 80,000

Dividend Income 3,000

Sale of Assets 7,000

Total Cash Inflows

Cash Outflows Amount ($)

Marketing Expenses 4,200

Insurance Payments 6,000

Miscellaneous Costs 600

Employee Salaries 38,000

Payroll Liabilities 3,500

Office Utilities 5,200

Total Cash Outflows

Net Cash Flow $42,500


Cash Balance Amount ($)

Opening Cash Balance 130,000

Closing Cash Balance $172,500


BALANCE SHEET

Assets

Current Assets

Item Amount ($)

Cash and Cash Equivalents 180,500

Accounts Receivable 290,000

Inventory 410,000

Prepaid Expenses 48,200

Total Current Assets $928,700

Non-Current Assets

Item Amount ($)

Property, Plant & Equipment 1,520,300

Total Assets $2,449,000

Liabilities and Shareholders' Equity

Current Liabilities

Item Amount ($)

Short-Term Loans 12,000

Accounts Payable 260,500

Accrued Liabilities 230,000

Total Current Liabilities $502,500


Long-Term Liabilities

Item Amount ($)

Long-Term Debt 690,500

Total Liabilities $1,193,000

Shareholders' Equity

Item Amount ($)

Common Stock 60,000

Additional Paid-in Capital 540,000

Retained Earnings 656,000

Total Shareholders' Equity $1,256,000

Total Liabilities & Shareholders' Equity: $2,449,000


BANK RECONCILIATION
Check Register

Description Amount ($)

Balance 25,600.50

Less: Service Charges 15.00

Add: Interest Earned 290.80

Adjusted Check Register Balance $25,876.30

Bank Statement

Description Amount ($)

Balance 23,450.75

Add: Deposits in Transit 3,150.55

Less: Outstanding Checks

- Check No. 1450 275.60

- Check No. 1455 198.90

- Check No. 1460 250.50

Total Outstanding Checks 725.00

Adjusted Bank Balance $25,876.30

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