Statement of Comprehensive Income

Activity 1 Week 2
Comparative Statement of financial Position December 31, 2009 and 2010

December 31, 2009 and 2010 2009 2010

2010 2009

Current Assets Sales 4,000,000

Cash and Cash Equivalent 30,000 80,000 Less: Cost of sales 1,400,000

Account Receivable, net 1,672,000 304,000

Gross profit on 2,600,000
sales
Inventory 500,000 300,000
Expenses:

Prepaid Expenses 48,000 50,000 Salaries -780,000

Expense
Total Current Assets 2,250,000 734,000
Rent expense -156,000

Non- Current Assets Utilities -120,000

Expense
Property, plant and 780,000 720,000
Equipment Depreciation -240,000
Expense
Total Non-Current Asset 780,000 720,000
Bad debt -72,000
Total Assets 3,030,000 1,454,000 expense

Interest expense -36,000

Liabilities and
Stockholders Equity

Account Payable-net 980,000 420,000

 Notes Payable (current 180,000 180,000 9. Net profit ratio 0.30:1.00
portion)
10. Debt-to-equity ratio 0.79:1.00 1.94:1.00
Total Current Liabilities 1,160,000 600,000
11. Net profit
Notes payable (non-current 180,000 360,000
portion) 12. Return on assets 0.39:1.00

Total non-Current Liabilities 180,000 360,000 13. Return on equity 0.71:1.00

Total Liabilities 1,340,000 960,000 14. Days of receivable

Equity

Owner's Equity 1,690,000 494,000 Net income 1,196,000

Total Liabiltity and 3,030,000 1,454,000
Owners Equity

In each of the following compute the:

2010 2009

1. Current ratio 1.94:1.00 1.22:1.00

2. Quick ratio 1.48:1.00 0.64:1.00

3. Working Capital 1.94:1.00 1.22:1.00

4. Inventory Turnover 2.80:1.00 4.67:1.00

5. Days of Inventory

6. Debt ratio 2.26:1.00 1.51:1.00

7. Equity ratio 0.56:1.00 0.34:1.00

8. Gross profit ratio 0.65:1.00