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