Financial Tasks

Problem 2-1: Preparing Financial Statements

Information below is for Buraydah Manufacturing, Inc. for the year ended December 31, 20×1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated.
Accumulated depreciation2,817,000
Accounts receivable395,000
Interest expense237,000
Cost of goods sold2,672,000
Short term notes payable195,000
Income taxes366,600
Common stock428,000
Dividends paid120,000
Marketing, general and administrative expenses1,678,500
Long term debt5,844,000
Fixed assets (property & equipment)7,218,000
Accounts payable395,000
Other assets862,000
Depreciation expense422,000
Retained earnings at beginning of year419,600
Number of shares of common stock1,000
Using the information above:
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
Using an additional column for each financial statement:
5. Prepare a common sized income statement
6. Prepare a common sized balance sheet
Problem 2-2 Preparing Statement of Cash Flows
Given the following information, prepare a statement of cash flows.
Increase in common stock22
Decrease in accounts receivable24
Increase in inventories35
Operating income80
Increase in accounts payable25
Interest expense25
Depreciation expense12
Increase in long term debt48
Increase in fixed assets33
Income taxes17
Beginning cash balance20
Assume all amounts are in 000’s SAR.