GROUP 2

ABM 201
Sparky, Inc.
Income Statement
For the year ended December 31, 20
Sales
Less:
Cost of Good Sold 115,460.00
Operating Expenses 58,910.00
Income Tax Expenses 7,280.00
Interest Expense 2,730.00
Loss on Sale of Plant Assets 7,500.00
Net Income

Sparky, Inc.
Balance Sheet
December 31, 2016
Assets
Cash 97,800.00
Accounts Receivables 90,800.00
Inventories 112,500.00
Prepaid Expenses 18,400.00
Investments 108,000.00
Plant Assets 270,000.00
Accumulated Depreciation (50,000.00)
Total Assets ₱647,500.00

PROJECTED INCOME STATEMENT

Particulars % of Sales Prior Year (201
Sales 15% 342,780.00
COGS 15% 115,460.00
Operating Expense 15% 58,910.00
Income Tax Expense 15% 7,280.00
Interest Expense 15% 2,730.00
Loss on Sale of Plant Ass 15% 7,500.00
Net Income 15% 150,900.00
 PROJECTED BALANCE SHEET
Particulars % of Sales Prior Year (201
Assets
Cash 15% 97,800.00
Accounts Receivables 15% 90,800.00
Inventories 15% 112,500.00
Prepaid Expense 15% 18,400.00
Investments 15% 108,000.00
Plant Assets 15% 270,000.00
Accumulated Depreciation 15% (50,000.00)
Total Assets 15% 647,500.00
Liabilities and
Stockholder's Equity
Accounts Payable 15% 92,000.00
Accrued Expenses Payab 15% 16,500.00
Bonds Payable 15% 85,000.00
Common Stock 15% 180,000.00
APIC - Common Stock 15% 40,000.00
Retained Earnings 15% 234,000.00
Total Liabilities &
Stockholder's Equity 15% 647,500.00

Sparky, Inc.
Income Statement
For the year ended December 31, 20
Sales
Less:
Cost of Good Sold 132,779.00
Operating Expenses 67,746.50
Income Tax Expenses 8,372.00
Interest Expense 3,139.50
Loss on Sale of Plant Assets 8,625.00
Net Income

Sparky, Inc.
Balance Sheet
December 31, 2017
Assets
Cash 112,470.00
Accounts Receivables 104,420.00
Inventories 129,375.00
Prepaid Expenses 21,160.00
Investments 124,200.00
Plant Assets 310,500.00
Accumulated Depreciation (57,500.00)
Total Assets ₱744,625.00
 ₱342,780.00

191,880.00
₱150,900.00

Liabilities & Stockholder's Equity

Accounts Payable 92,000.00
Accrued Expenses Payable 16,500.00
Bonds Payable 85,000.00
Common Stock 180,000.00
APIC - Common Stock 40,000.00
Retained Earnings 234,000.00

Total Liabilities & Stockholder's Equity ₱647,500.00

NCOME STATEMENT
Projected Year (2017)
394,197.00
132,779.00
67,746.50
8,372.00
3,139.50
8,625.00
173,535.00
D BALANCE SHEET
Projected Year (2017)

112,470.00
104,420.00
129,375.00
21,160.00
124,200.00
310,500.00
(57,500.00)
744,625.00

105,800.00
18,975.00
97,750.00
207,000.00
46,000.00
269,100.00

744,625.00

394,197.00

220,662.00
₱173,535.00

Liabilities & Stockholder's Equity

Accounts Payable 105,800.00
Accrued Expenses Payable 18,975.00
Bonds Payable 97,750.00
Common Stock 207,000.00
APIC - Common Stock 46,000.00
Retained Earnings 269,100.00

Total Liabilities & Stockholder's Equity ₱744,625.00

Account Receivable Per Formula Solution
Receivables Turnover RatNet Credit Sales/Beginning Receiva394,197.00/104,420.
Age of Receivables
Inventory Period
Inventory Turnover Ratio
Age of Inventory
Operating Cycle
 Ansswer
3.775 or 3.78