FIN500: Principles of Finance Module 2 Critical Thinking Assignment Problem 2-1: Preparing Financial Statements Using the following data: 1

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FIN500: Principles of Finance Module 2 Critical Thinking Assignment Problem 2-1: Preparing Financial Statements Using the following data: 1. Prepare an income statement in good form 2. Prepare end of year balance sheet in good form 3. Calculate net working capital 4. Calculate the debt ratio DATA Depreciation expense SAR 75,000 Cash 250,000 Long-Term Debt 450,000 Net Sales 750,000 Accounts payable 98,000 Marketing and general and administrative expenses 110,000 Buildings and Equipment 950,000 Notes payable Accounts receivable 80,000 165,000 Interest expense 5,250 Accrued expenses 8,500 Common Stock 350,000 Cost of Goods sold 250,000 Inventory 105,000 Taxes 72,000 Problem 2-2 Preparing Statement of Cash Flows Given the following data, prepare a statement of cash flows. DATA Increase in accounts receivable 42 Increase in inventories 37 Operating Income 105 Interest Expense 35 Increase in accounts payable 32 Dividends 18 Increase in common stock 23 Increase in net fixed assets 27 Depreciation Expense 14 Income taxes 20 FIN500: Principles of Finance Module 2 Critical Thinking Assignment Problem 2-1: Preparing Financial Statements Using the following data: 1. Prepare an income statement in good form 2. Prepare end of year balance sheet in good form 3. Calculate net working capital 4. Calculate the debt ratio DATA Depreciation expense SAR 75,000 Cash 250,000 Long-Term Debt 450,000 Net Sales 750,000 Accounts payable 98,000 Marketing and general and administrative expenses 110,000 Buildings and Equipment 950,000 Notes payable Accounts receivable 80,000 165,000 Interest expense 5,250 Accrued expenses 8,500 Common Stock 350,000 Cost of Goods sold 250,000 Inventory 105,000 Taxes 72,000 Problem 2-2 Preparing Statement of Cash Flows Given the following data, prepare a statement of cash flows. DATA Increase in accounts receivable 42 Increase in inventories 37 Operating Income 105 Interest Expense 35 Increase in accounts payable 32 Dividends 18 Increase in common stock 23 Increase in net fixed assets 27 Depreciation Expense 14 Income taxes 20