Professional Documents
Culture Documents
Equipment Less:Accumulated Depreciation Building Less:Accumulated Depreciation Land Other Non-current Assets 34,983 21,798 11,700 29,835 5,559 3,150 13,260 (5,304) 585,000 (156,000) 89,700 4,857 638,538
30-Jun 66,660 26,505 26,520 6,630 2,826 36,660 (5,928) 585,000 (157,950) 89,700 5,265 681,888
2. Make comments about how the fina Notes payable increased; the funds we Accounts payable increased, indicating Cash increased, possibly due to cash s Although liabilities increased, the comp Although the current ratio went down, i 3. Why do retained earnings not incre Because the owner paid herself a divid 4. As of June 30, do you feel that May Yes, I think it is at least worth that. The
LIABILITIES & SHAREHOLDER'S EQUITY Accounts Payable Bank Notes Payable Accrued Wages Payable Taxes Payable Other Non-Current Liabilities Capital Stock Retained Earnings
Make comments about how the financial condition as of the end of June compared with that at the beginning of June. otes payable increased; the funds were probably used to finance the equipment purchased. ccounts payable increased, indicating possible increase in available inventory during the month. ash increased, possibly due to cash sales. though liabilities increased, the company has sufficient current assets to pay for these. though the current ratio went down, it is still okay at 2.1. Why do retained earnings not increase by the amount of June net income? ecause the owner paid herself a dividend of 11,700. As of June 30, do you feel that Maynard Company is worth the amount in Shareholder's Equity, $619,446? Explain. es, I think it is at least worth that. The return it's generating may be difficult to find elsewhere. @ 15% @ 15% 619,446 92,917 7,743 yearly monthly
Maynard Company Income Statement For the Month Ended June 30, 20XX Sales Less Cost of Sales Gross Margin Expenses Wages Utilities Supplies Insurance Expense Miscellaneous Expense Depreciation Expense Income Before Tax Income Tax expense Net Income Less Dividends Increase in Retained Earnings $ 70,925.00 39,345.00 31,580.00
Cost of Sales Merchandise Payed by Cash Merchandise Payed by Credit Inventory on June 1 Total Goods Available for sales in June Less Inventory of June 30 Cost of Sales
1-Jun ASSETS Cash Accounts Receivable Note Receivable, Diane Maynard Merchandise Inventory Supplies on Hand Prepaid Insurance Equipment Less:Accumulated Depreciation Building Less:Accumulated Depreciation Land Other Non-current Assets 34,983 21,798 11,700 29,835 5,559 3,150 13,260 (5,304) 585,000 (156,000) 89,700 4,857 638,538
30-Jun 66,660 26,505 26,520 6,630 2,826 36,660 (5,928) 585,000 (157,950) 89,700 5,265 681,888 19,977 4,707 increased sales
23,400
48,084
LIABILITIES & SHAREHOLDER'S EQUITY Accounts Payable Bank Notes Payable Accrued Wages Payable Taxes Payable Other Non-Current Liabilities Capital Stock Retained Earnings
35,415
619,446
2. Make comments about how the financial condition as of the end of June compared with that at the beginning of June. Notes payable increased; the funds were probably used to finance the equipment purchased . Accounts payable increased, indicating possible increase in available inventory during the month Cash increased, possibly due to cash sales. Although liabilities increased, the company has sufficient current assets to pay for these. 3. Why do retained earnings not increase by the amount of June net income? Because the owner paid herself a dividend of 11,700 @ 15% @ 15% 92,917 7,743 yearly monthly
Cash IN Cash Sales Credit Customers Diane Maynard Bank Loan Sub Total Cash out Equipment Purchased other assets purchased Payments on accounts payable Cash purchase of Merchandise Cash purchase of supplies Dividends Wages Utilities Paid Miscellaneous Payments Sub Total
Cost of Sales Merchandise payed by cash Merchandise payed by credit Inventory of June 1 Inventory of June 30
44,420.00 21,798.00 11,700.00 20,865.00 98,783.00 23,400.00 408.00 8,517.00 14,715.00 1,671.00 11,700.00 5,660.00 900.00 135.00 67,106.00
Maynard Company Income Statement For the Month Ended June 30, 20xx Net Sales Less Cost of Sales Gross Margin Expenses Wages Utilities Supplies Insurance Expense Miscellaneous Expense Depreciation Expense Income Before Tax Tax Less Dividends Increase in retained Earnings 70,925.00 (39,345.00) 31,580.00 5,888.00 900.00 600.00 324.00 135.00 2,574.00 10,421.00 21,159.00 1,524.00 19,635.00 11,700.00 7,935.00