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 depreciation | 2,817,000 |
| Sales | 5,826,000 |
| Accounts receivable | 395,000 |
| Interest expense | 237,000 |
| Cost of goods sold | 2,672,000 |
| Short term notes payable | 195,000 |
| Income taxes | 366,600 |
| Inventories | 967,000 |
| Common stock | 428,000 |
| Dividends paid | 120,000 |
| Cash | 986,500 |
| Marketing, general and administrative expenses | 1,678,500 |
| Long term debt | 5,844,000 |
| Fixed assets (property & equipment) | 7,218,000 |
| Accounts payable | 395,000 |
| Other assets | 862,000 |
| Depreciation expense | 422,000 |
| Retained earnings at beginning of year | 419,600 |
| Number of shares of common stock | 1,000 |
| 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. | |
| Dividends | 15 |
| Increase in common stock | 22 |
| Decrease in accounts receivable | 24 |
| Increase in inventories | 35 |
| Operating income | 80 |
| Increase in accounts payable | 25 |
| Interest expense | 25 |
| Depreciation expense | 12 |
| Increase in long term debt | 48 |
| Increase in fixed assets | 33 |
| Income taxes | 17 |
| Beginning cash balance | 20 |
| Assume all amounts are in 000’s SAR. |