Details of this Paper

MGT200-1 Assignment 2 Business Basic - Globus Enterprises

Description

solution


Question

Question;Globus Enterprises Year EndBalancesRevenue $263,200Wages expense $121,800Rent expense $65,100Supplies expense $50,400Miscellaneous expenses $5,250Cash $81,200Accounts receivable $51,800Supplies $9,100Prepaid insurance $8,400Land (fixed asset) $29,400Equipment (fixed asset) $25,900Accounts payable $20,650Notes payable $43,050Mortgage (long term) $29,750Assignment1. Using the data in the table above, create a balance sheet for Globus?s operations as of year end (December 31, 200X)2. Using the data in the table above, create an income statement for the year being examined.3. Analyze the financial statements using the following analytical tools:a. Current ratio (What does this ratio tell us about Globus?)b. Net working capital (What does working capital tell us about Globus?)Note: Although the Griffin/Ebert text defines working capital as the difference between current assets and current liabilities, most accounting works refer to this difference as net working capital. The conventional use of the term working capital is to identify it as current assets.c. Debt to equity ratio (What does this ratio tell us about Globus?) Note: To compute owners? equity from the data supplied here, remember the fundamental accounting equation:Assets = Liabilities + Owners? equityd. Leverage ratio (What does this ratio tell us about Globus?)e. Return on equity (What does this ratio tell us about Globus?)

 

Paper#46126 | Written in 18-Jul-2015

Price : $27
SiteLock