Jane Austin Bookstore Financial Analysis

Jane Austin Bookstore Financial Analysis

2) The following financial statements are to be used to answer the following questions: (5 points each, total 35 points)Jane Austin BookstoreBalance SheetDecember 31, 2012AssetsLiabilities and Stockholders EquityCash and equivalents$5,000Accounts Payable$10,000Accounts receivable$12,000Taxes Payable$4,500Inventory$25,000Other Liabilities$2,500Prepaid Expenses$3,000Mortgage payable$60,000Land$54,000Total Liabilities$77,000Building$63,000Accmulated Depreciation Building????$51,000Common Stock$30,000Trucks$20,000Retained earnings????Accmulated Depreciation Trucks$18,000$2,000Total Stockholders equity$75,000Total Assets$152,000Total Liabilities and Stockholders Equity$152,000Jane Austin BookstoreIncome StatementFor the year ended December 31, 2012Book Sales$100,000Cost of goods sold????Gross Profit$35,000Operating expensesSelling and administrative expense$14,000Depreciation expenses$8,000Total operating expense$22,000Income from operations$13,000Income tax (35%) expense$4,550Net Income$8,450What is the Accumulated Depreciation for Buildings on December 31, 2012?A) $12,000B) $51,000C) $63,000D) $114,000What is the Cost of goods sold for the year ended December 31, 2012?A) $8,000B) $12,000C) $65,000D) $100,000What are the total current assets as of December 31, 2011?A) $17,000B) $45,000C) $99,000D) $152,000What is the ending retained earnings balance as of December 31, 2012?A) $30,000B) $45,000C) $758,000D) $452,000If Jane Austin Bookstore sold 10,000 books during 2012, what is the average selling price per book?A) $3.50B) $6.50C) $7.25D) $10.00If trucks are depreciated over ten years with no residual value, how many years has Jane Austin Bookstore had this truck?A) 1 yearB) 6 yearsC) 9 yearsD) 10 yearsWhat are total long-term assets?A) $53,000B) $54,000C) $107,000D) $137,000


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