I.

D: Financial Statement for XYZ Company

AS on December, 31
Assets 2008 2007
A cash 4000 493000
Accunts Receivable 36000 29000
C Inventory 75000 61000
Plant & Equipment 210000 180000
Accumulated Depreciation -40000 -30000
Total Assets 285000 733000

LIABILITIES
& STOCKHOLDER’S EQUITY:
Accounts Payable 45000 39000
Common Stock 90000 556000
Retain Earnings 150000 138000
Total Liabilities &
Stockholder’s equity 285000 733000

For 2008, the company reported net income as follows:

XYZ Company
Income Statement
For the year ended 31 st December, 2008

Sales 500000
Less cost of goods Sold 300000
Gross Margin 200000
Less Operating Expenses 180000
Net Income 20000

Current Assets 583000

Current Liabilities 39000
B current Ratio for 2007 14.95
Average Inventory 68000
D Inventoy Turnover Ratio 4.41 Times
E Dividend 173000
Cash Flow From Operating Activities 526000
F Cash Flow From Investing Activities 478000
Cash Flow From Financing Activities 174000
Increase/Decrease in Cash 222000
cash payment for merchandise 292000
 Difference
-489000
7000
14000
30000
-10000
-448000

6000
-466000
12000

-448000

s follows: