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Accounting 11 Exercise 8-3 1. How are the account form and report form of the Balance sheet different? 2. What 5 categories of data are included on the classified Balance sheet? 3. On a classified balance sheet, what is the difference between a current and fixed asset or liability? 4. What is working capital? 5. What is a comparative financial statement? 6. What calculations does a common-size balance sheet use? 7. Shown below is the unclassified Balance Sheet for the Boat Repair Center, owned by Anna Rodriquez of Halifax. a. Calculate the total of the current assets: b. Calculate the total of the fixed assets: c. Calculate the total of the current liabilities: d. Calculate the total long-term liabilities: e. Calculate working capital: f. Calculate the total amount of the mortgage payable: 8. Given below is a completed partial work sheet. Prepare a Classified Balance Sheet in report form below. Partial Work sheet Classified Balance sheet- double click to edit __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ 9. The current assets and liabilities of Goodenough Company for a 5 year period are given below: a. Complete the schedule below by calculating the working capital for all 5 years b. Convert the data into a Trend Analysis chart by filling in the % amounts c. Create a Bar Graph in Excel to represent the data. Year 1 Current Assets Current Liabilities Working Capital % * 50 000 35 000 * percent of Year 1 amount: = Goodenough Company Balance sheet Data Year % Year % 2 3 Year 4 55 500 40 000 64 000 42 500 59 500 40 000 Dollar amount ----------------x Year 1 amount % 100 10. The Balance Sheets for 2 companies as of December 31, 2005 are given below. a. Convert the balance sheets into common-size form by filling out the worksheet below Remember the formula: Percentage = Dollar amount of item ----------------------------Total Assets x 100 b. Comment briefly on the ability of each of these companies to pay their accounts payable: c. Comment briefly on the total debt of each of these companies: Year 5 68 500 45 000 % 11. Shown below is the partially completed comparative balance sheet for Playfair company. a. Complete the statement Remember: Percentage Change = Increase or Decrease Dollar Amount ------------------------------------------x Amount for Year 1 b. 100 Identify the 4 most significant changes. For each one, state whether the change has been good or bad.