question archive instruction: Read carefully the instructions below and provide the required answers for each item
instruction: Read carefully the instructions below and provide the required answers for each item
Subject:FinancePrice:4.86 Bought22
instruction: Read carefully the instructions below and provide the required answers for each item. a. Create a balance sheet for the years 2017, 2018, 2019 using the data listed below. b. Create an income statement using the data listed below and compute for the following: -Gross Profit Operating Profit -Earnings Before Taxes -Net Income c. Compute for the financial ratios and interpret your answers. (No need to include the step by step computation of ratios) -Gross Profit Ratio -Net Profit Ratio -Operating Ratio - Current Ratio -Acid Test Ratio -Inventory Turnover Ratio - Receivables Turnover Ratio -Average Collection Period -Working Capital Turnover Ratio - Fixed Assets Turnover Ratio -Debt to Equity Ratio - Equity Ratio
Company Name: Bangtan Entertainment Company Year-End Reports note: amount in millions BALANCE SHEET ITEMS Other Long Term Assets Deferred Taxes Inventory Retained Earnings Other Current Assets Other non-current liabilities Long-term investments Good and intangible Assets 2019 6075 2284 3379 32882 0 8510 19879 26766 2018 4148 2354 3071 30112 0 7646 20279 21587 2017 4230 2522 5984 27522 219 8021 21952 16636 Accounts Receivables Comprehensive Income Accounts Payable Notes Payable Bonds Payable Cash on hand Prepaid Exprenses Property, Plant, and Equipment Common Stock Net 3,971 -13544 20000 6973 27516 11,175 1886 13250 1760 3685 - 12814 22000 6782 25376 16115 2059 12272 1760 7667 -10305 21000 6194 31182 20675 2000 8533 1760 INCOME STATEMENT ITEMS Revenue Cost of Good Sold Selling Expenses Administrative Expenses Interest Expense Taxes 37266 14619 6000 6103 700 1801 34300 13067 5000 6002 927 1749 36212 13721 6800 6334 865 5607
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Balance Sheet for the year 2017
| Assets | Amount | Liabilities | Amount |
| Cash on hand | 20,675 | Accounts Payable | 21,000 |
| Prepaid expenses | 2,000 | Notes Payable | 6,194 |
| Accounts receivable | 7,667 | Bonds payable | 31,182 |
| Inventory | 5,984 | Common stock net | 1,760 |
| Other current assets | 219 | Comprehensive income | -10,305 |
| Good and intangible assets | 16,636 | Deferred taxes | 2,522 |
| Other long term assets | 4,230 | Retained earnings | 27,522 |
| Long term investments | 21,952 | Other non current liabilities | 8,021 |
| Property, plant & equipment | 8,533 | ||
Balance Sheet for the year 2018
| Assets | Amount | Liabilities | Amount |
| Cash on hand | 16,115 | Accounts Payable | 22,000 |
| Prepaid expenses | 2,059 | Notes Payable | 6,782 |
| Accounts receivable | 3,685 | Bonds payable | 25,376 |
| Inventory | 3,071 | Common stock net | 1,760 |
| Other current assets | 0 | Comprehensive income | -12,814 |
| Good and intangible assets | 21,587 | Deferred taxes | 2,354 |
| Other long term assets | 4,148 | Retained earnings | 30,112 |
| Long term investments | 20,279 | Other non current liabilities | 7,646 |
| Property, plant & equipment | 12,272 | ||
Balance Sheet for the year 2019
| Assets | Amount | Liabilities | Amount |
| Cash on hand | 11,175 | Accounts Payable | 20,000 |
| Prepaid expenses | 1,886 | Notes Payable | 6,973 |
| Accounts receivable | 3,971 | Bonds payable | 27,516 |
| Inventory | 3,379 | Common stock net | 1,760 |
| Other current assets | 0 | Comprehensive income | -13,544 |
| Good and intangible assets | 26,766 | Deferred taxes | 2,284 |
| Other long term assets | 6,075 | Retained earnings | 32,882 |
| Long term investments | 19,879 | Other non current liabilities | 8,510 |
| Property, plant & equipment | 13,250 | ||
Income Statement for the year 2017
| Particulars | Amount |
| Revenues | 36,212 |
| Less : Expenses | |
| Cost of Goods sold | 13,721 |
| Selling expenses | 6,800 |
| Administrative expenses | 6,334 |
| Interest expenses | 865 |
| Taxes | 5,607 |
| Net Income | 2,885 |
Gross Profit = Revenue - Cost of Goods sold = 22,491
Operating Profit = Revenue - Operating Expenses (COGS, Selling, administrative exp) = 9,357
Earning Before Taxes = 8,492 (Revenue - Operating expenses including interest expense)
Income Statement for the year 2018
| Particulars | Amount |
| Revenues | 34,300 |
| Less : Expenses | |
| Cost of Goods sold | 13,067 |
| Selling expenses | 5,000 |
| Administrative expenses | 6,002 |
| Interest expenses | 927 |
| Taxes | 1,749 |
| Net Income | 7,555 |
Gross Profit = Revenue - Cost of Goods sold = 21,233
Operating Profit = Revenue - Operating Expenses (COGS, Selling, administrative exp)=10,231
Earning Before Taxes = 9,304 (Revenue - Operating expenses including interest expense)
Income Statement for the year 2019
| Particulars | Amount |
| Revenues | 37,266 |
| Less : Expenses | |
| Cost of Goods sold | 14,619 |
| Selling expenses | 6,000 |
| Administrative expenses | 6,103 |
| Interest expenses | 700 |
| Taxes | 1,801 |
| Net Income | 8,043 |
Gross Profit = Revenue - Cost of Goods sold = 22,647
Operating Profit = Revenue - Operating Expenses (COGS, Selling, administrative exp)=10,544
Earning Before Taxes = 9,844 (Revenue - Operating expenses including interest expense)
Calculation of Ratios :
Gross Profit Ratio = Gross Profit / Sales x 100
Gross profit for 2017= 62.11%; Gross profit for 2018= 61.90%; Gross profit for 2019= 60.77%
Net Profit Ratio = Net Profit / Sales x 100
Net profit for 2017 = 7.97%; Net profit for 2018 = 22.03%; Net profit for 2019 = 21.58%
Operating Ratio = Operating Expenses / Sales x 100
Operating ratio for 2017 = 74.16%; Operating ratio for 2018 = 70.17%; Operating ratio for 2019 = 71.71%
Current Ratio = Current asset / Current liabilities
Current ratio for 2017 = 0.55 ; Current ratio for 2018 = 0.40 ; Current ratio for 2019 = 0.32
Acid Test Ratio = Current asset - Inventory / Current liabilities
Acid test ratio for 2017 = 0.46; Acid test ratio for 2018 = 0.35; Acid test ratio for 2019 = 0.27
Inventory Turnover Ratio =Cost of Goods Sold / Average Inventory
Inventory turnover ratio for 2017 = 2.29 times ; Inventory turnover ratio for 2018 = 4.25 times ; Inventory turnover ratio for 2019 = 4.33 times
Receivables Turnover Ratio = Net Sales / Average Accounts Receivable
Receivables turnover ratio for 2017 = 4.72 times ; Receivables turnover ratio for 2018 = 9.31 times ; Receivables turnover ratio for 2019 = 9.38 times
Average Collection Period = 365 days / Receivable turnover ratio
Average Collection Period for 2017 = 77.33 days; Average Collection Period for 2018 = 39.21 days ; Average Collection Period for 2019 = 38.91 days
Working Capital Turnover Ratio = Sales / Working Capital
Working Capital = Current asset - Current Liabilities
Working Capital Turnover Ratio for 2017 = 1.21; Working Capital Turnover Ratio for 2018 = 0.93 ; Working Capital Turnover Ratio for 2019 = 0.88
Fixed Asset Turnover Ratio = Sales / Average Fixed Assets
Fixed Asset Turnover Ratio for 2017 = 0.71 times ; Fixed Asset Turnover Ratio for 2018 = 0.59 times ; Fixed Asset Turnover Ratio for 2019 = 0.56 times
Debt to Equity Ratio = Total liabilities / Shareholders Equity
Debt to Equity Ratio for 2017 = 48.94 ; Debt to Equity Ratio for 2018 = 46.28 ; Debt to Equity Ratio for 2019 = 48.08
Equity Ratio = Shareholders Equity / Total Assets
Equity Ratio for 2017 = 1760 / 87,896 = 0.02
Equity Ratio for 2018 = 1760 / 83,216 = 0.02
Equity Ratio for 2019 = 1760 / 86,381 = 0.02
