ZeePedia

STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 2

<< STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 1
BALANCE SHEET AND INCOME STATEMENT RATIOS >>
img
Financial Statement Analysis-FIN621
VU
Lesson-41
STOCKHOLDERS' EQUITY SECTION OF THE BALANCE SHEET
(Continued)
Example No:2
MOOSA CORPORATION
Balance Sheet as on June 30, ________
2006
2005
Cash
35,000
25,000
Accounts receivable (net)
91,000
90,000
Inventory
160,000
140,000
Short-term prepayments
4,000
5,000
Investment in land
90,000
100,000
Equipment
880,000
640,000
Less: Accumulated depreciation
(260,000)
(200,000)
Total assets
Rs.1, 000,000
Rs.800, 000
======
=======
2005-06
2004-05
Accounts payable
Rs.105, 000
Rs.46, 000
Income taxes payable and
Other accrued liabilities
40,000
25,000
Bonds payable ­ 8%
280,000
280,000
Premium on bonds payable
3,600
4,000
Capital stock Rs.5 par
165,000
110,000
Retained earnings
406,400
335,000
Total liabilities and stockholders' equity
Rs.1, 000,000
Rs.800, 000
MOOSA CORPORATION
Income Statement for the year
2005-06
2004-05
150
img
Financial Statement Analysis-FIN621
VU
Sales (net of discount and allowances)
Rs.2, 200,000
Rs.1, 600,000
Cost of goods sold
1,606,000
1,120,000
Gross profit on sales
Rs. 594,000
Rs. 480,000
Expenses (including Rs.22, 400 Interest expense)
(336,600)
(352,000)
Income taxes
(91,000)
(48,000)
________
________
Net income
Rs.166, 400
Rs.80, 000
========
=======
2005-06
2004-05
1. Quick ratio:
Rs.126, 000 ÷Rs.145, 000
0.9 to 1
Rs.115, 000 ÷ Rs.71, 000
1.6 to 1
2.
Current ratio:
Rs.290, 000 ÷Rs.145, 000
2 to 1
Rs.260, 000 ÷Rs.71, 000
3.7 to 1
3.
Equity ratio:
Rs.571,400 ÷ Rs.1,000,000
57%
Rs.445,000 ÷ Rs.800,000
56%
4.
Debt ratio:
Rs.428,600 ÷ Rs.1,000,000
43%
Rs.355,000 ÷ Rs.800,000
44%
151
Table of Contents:
  1. ACCOUNTING & ACCOUNTING PRINCIPLES
  2. Dual Aspect of Transactions
  3. Rules of Debit and Credit
  4. Steps in Accounting Cycle
  5. Preparing Balance Sheet from Trial Balance
  6. Business transactions
  7. Adjusting Entry to record Expenses on Fixed Assets
  8. Preparing Financial Statements
  9. Closing entries in Accounting Cycle
  10. Income Statement
  11. Balance Sheet
  12. Cash Flow Statement
  13. Preparing Cash Flows
  14. Additional Information (AI)
  15. Cash flow from Operating Activities
  16. Operating Activities’ portion of cash flow statement
  17. Cash flow from financing Activities
  18. Notes to Financial Statements
  19. Charging Costs of Inventory to Income Statement
  20. First-in-First - out (FIFO), Last-in-First-Out (LIFO)
  21. Depreciation Accounting Policies
  22. Accelerated-Depreciation method
  23. Auditor’s Report, Opinion, Certificate
  24. Management Discussion & Analyses (MD&A)
  25. TYPES OF BUSINESS ORGANIZATIONS
  26. Incorporation of business
  27. Authorized Share Capital, Issued Share Capital
  28. Book Values of equity, share
  29. SUMMARY
  30. SUMMARY
  31. Analysis of income statement and balance sheet:
  32. COMMON –SIZE AND INDEX ANALYSIS
  33. ANALYSIS BY RATIOS
  34. ACTIVITY RATIOS
  35. Liquidity of Receivables
  36. LEVERAGE, DEBT RATIOS
  37. PROFITABILITY RATIOS
  38. Analysis by Preferred Stockholders
  39. Efficiency of operating cycle, process
  40. STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 1
  41. STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 2
  42. BALANCE SHEET AND INCOME STATEMENT RATIOS
  43. Financial Consultation Case Study
  44. ANALYSIS OF BALANCE SHEET & INCOME STATEMENT
  45. SUMMARY OF FINDGINS