Financial Accounting Assesment Analysis

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student:
Name of the University:
Author’s Note:

FINANCIAL ACCOUNTING1
Table of Contents
Answer to question 1:......................................................................................................................2
Part a:...........................................................................................................................................2
Part b:...........................................................................................................................................2
Part c:...........................................................................................................................................3
Part d:...........................................................................................................................................3
Part e:...........................................................................................................................................3
Part f:...........................................................................................................................................4
Answer to question 2:......................................................................................................................5
Bibliography:...................................................................................................................................6

FINANCIAL ACCOUNTING2
Answer to question 1:
Part a:
Buraydah Manufacturing Inc.
Income Statement
For the year ended December 31, 20X1
Sales 5,826,000
Cost of goods sold (2,672,000)
Gross Profit 3,154,000
Expenses:
Marketing, general and administrative expenses 1,678,500
Depreciation expense 422,000
Total expenses 2,100,500
Profit before interest and tax (PBIT) 1,053,500
Interest expense 237,000
Profit before tax (PBT) 816,500
Income taxes 366,600
Profit after tax (PAT) 449,900
Part b:
Buraydah Manufacturing Inc.
Balance sheet
As at December 31, 20X1
Current assets:
Cash 986,500
Accounts receivable 233,000
Inventories 967,000
Other assets 862,000
Total current assets 3,048,500
Non-current assets:
Fixed assets (property & equipment) 7,218,000
Accumulated depreciation (2,817,000)
Total non current assets 4,401,000
Total assets 7,449,500