Assignment # 3

SPRING SEMESTER 2008 Marks:15

FIN 621 – Financial Statement Analysis
Student ID/Login ID: _____________________________

Student Name: _____________________________

Please read the following instructions carefully before attempting Quiz

• This Quiz covers lesson no. 31- 42

• Last date for submission of assignment no 3 is as per announcement

• All instruction will be considered during checking assignment. So, consider all these.

• Assignment must be in Word documents, all other would be marked zero.

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condition.
Following is the Balance Sheet and Income Statement of ABC Corporation.

ABC Corporation
Balance Sheet
For the year ended December 31 2000
(In Thousands of Rupees)

Current Assets Liabilities

Cash ? Current Liabilities ?
Account Receivable ? Long Term Debt 8% Interest ?
Inventory ?
Total Current Assets ? Total Liabilities ?
Plant Assets Stock Holder's Equity
Equipment 1,800 Capital Stock Rs.10 Par 1,000
Less: Accumulated
300 1,500 Retained Earning 200 1200
Depreciation
Total Assets ? Total Equities ?

ABC Corporation
Income Statement
For the year ended December 31 2000
(In Thousands of Rupees)
Net Sales ?
Cost of Goods Sold ?
Gross Profit (25% of Net Sales) ?
Operating Expenses ?
Operating Income (10% of Net Sales) ?
Interest Expenses 84
Income before Income Tax ?
Income Tax (40% of income before income tax) ?
Net Income 180

Additional Information:
1) The equity ratio 40%, the debt ratio was 60%
2) The only interest expense was on the long term debt.
3) The beginning inventory was Rs.500,000; the inventory turnover was 4.8 times
4) The current ratio was 2 to 1. The quick ratio was 1.07 to 1
5) The beginning balance in accounts receivable was Rs.280, 000 the account receivable turnover for the
year was 12.8 times. All sales were made on account

Required:
a) Complete the Financial Statements by use of available information (5)
b) Give all computations of amounts appearing in the Balance Sheet and Income Statement (10)