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Jane Austin Bookstore ? Financial Analysis

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2) The following financial statements are to be used to answer the following questions: (5 points each, total 35 points);Jane Austin Bookstore;Balance Sheet;December 31, 2012;Assets;Liabilities and Stockholder's Equity;Cash and equivalents;\$5,000;Accounts Payable;\$10,000;Accounts receivable;\$12,000;Taxes Payable;\$4,500;Inventory;\$25,000;Other Liabilities;\$2,500;Prepaid Expenses;\$3,000;Mortgage payable;\$60,000;Land;\$54,000;Total Liabilities;\$77,000;Building;\$63,000;Accmulated Depreciation - Building;????;\$51,000;Common Stock;\$30,000;Trucks;\$20,000;Retained earnings;????;Accmulated Depreciation - Trucks;\$18,000;\$2,000;Total Stockholder's equity;\$75,000;Total Assets;\$152,000;Total Liabilities and Stockholder's Equity;\$152,000;Jane Austin Bookstore;Income Statement;For the year ended December 31, 2012;Book Sales;\$100,000;Cost of goods sold;????;Gross Profit;\$35,000;Operating expenses;Selling and administrative expense;\$14,000;Depreciation expenses;\$8,000;Total operating expense;\$22,000;Income from operations;\$13,000;Income tax (35%) expense;\$4,550;Net Income;\$8,450;What is the Accumulated Depreciation for Buildings on December 31, 2012?;A) \$12,000;B) \$51,000;C) \$63,000;D) \$114,000;What is the Cost of goods sold for the year ended December 31, 2012?;A) \$8,000;B) \$12,000;C) \$65,000;D) \$100,000;What are the total current assets as of December 31, 2011?;A) \$17,000;B) \$45,000;C) \$99,000;D) \$152,000;What is the ending retained earnings balance as of December 31, 2012?;A) \$30,000;B) \$45,000;C) \$758,000;D) \$452,000;If Jane Austin Bookstore sold 10,000 books during 2012, what is the average selling price per book?;A) \$3.50;B) \$6.50;C) \$7.25;D) \$10.00;If trucks are depreciated over ten years with no residual value, how many years has Jane Austin Bookstore had this truck?;A) 1 year;B) 6 years;C) 9 years;D) 10 years;What are total long-term assets?;A) \$53,000;B) \$54,000;C) \$107,000;D) \$137,000

Paper#79454 | Written in 18-Jul-2015

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