Assignment – Financial Statement Analysis

Assignment # 3SPRING SEMESTER 2016Marks:15FIN 621 – Financial Statement AnalysisStudent 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.•Give the answer according to question•Use only the black font color•Don’t rely only on handouts, use recommended books also.•Make sure that you upload the solution before due date. No solution will be acceptedthrough E-mail after the due date.•Cheating or copying of solution is strictly prohibited; No credit will be given tocopied assignment.Following is the Balance Sheet and Income Statement of ABC Corporation.ABC CorporationBalance SheetFor the year ended December 31 2000(In Thousands of Rupees)Current Assets LiabilitiesCash?Current LiabilitiesAccount Receivable?Long Term Debt 8% InterestInventory?Total LiabilitiesTotal Current Assets?Plant Assets Stock Holder’s EquityEquipment1,800Capital Stock Rs.10 ParLess: Accumulated300 1,500 Retained EarningDepreciationTotal Assets?Total Equities???1,000200 1200?ABC CorporationIncome StatementFor the year ended December 31 2000(In Thousands of Rupees)Net SalesCost of Goods SoldGross Profit (25% of Net Sales)Operating ExpensesOperating Income (10% of Net Sales)Interest ExpensesIncome before Income TaxIncome Tax (40% of income before income tax)Net Income?????84??180Additional 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 times4) The current ratio was 2 to 1. The quick ratio was 1.07 to 15) The beginning balance in accounts receivable was Rs.280, 000 the account receivable turnover for theyear was 12.8 times. All sales were made on accountRequired: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)