Financial Analysis | Assignment | Answers

Financial Analysis

Financial Analysis 1
Question-Answers
1.
Biker are better Inc.
Income Statement
(for the year ending 31st December 2018)
Particulars 2018
Revenue
$
10,750,000.00
Less: Cost of goods sold
$
6,689,500.00
Gross Profit
$
4,060,500.00
Operating expenses
Selling expenses
Advertising expenses
$
330,000.00
IT network Expense
$
45,000.00
General & Admin Expenses
Rent
$
200,000.00
Salaries
$
1,125,000.00
Sales salaries and commission
$
425,500.00
Utilities
$
145,000.00
Maintenance & Repair Expenses
$
75,000.00
Insurance
$
65,000.00
Depreciation Expense and Equipment
$
450,000.00
Total Operating expenses
$
2,860,500.00
Earnings before interest and tax
$
1,200,000.00
Interest
$
93,750.00

Financial Analysis 2
Earnings before tax
$
1,106,250.00
Less: Tax
$
387,188.00
Profit After Tax
$
719,062.00
Biker are better Inc.
Income Statement
(for the year ending 31st December 2019)
Particulars 2019
Revenue $ 11,287,500.00
Less: Cost of goods sold $ 7,191,213.00
Gross Profit $ 4,096,287.00
Operating expenses
Selling expenses
Advertising expenses $ 363,000.00
IT network Expense $ 47,250.00
General & Admin Expenses
Rent $ 205,000.00
Salaries $ 1,153,125.00
Sales salaries and commission $ 457,412.00
Utilities $ 148,625.00
Maintenance & Repair Expenses $ 82,500.00
Insurance $ 66,625.00
Depreciation Expense and Equipment $ 450,000.00
Total Operating expenses $ 2,973,537.00
Earnings before interest and tax $ 1,122,750.00
Interest $ 75,000.00
Earnings before tax $ 1,047,750.00
Less: Tax $ 366,713.00
Profit After Tax $ 681,037.00
Biker are better Inc.
Balance Sheet
(as at 31st December 2018)

Financial Analysis 3
Amount Amount
Assets
Current Assets
Cash
$
1,250,000.00
Accounts Receivable
$
950,000.00
Office Supplies
$
75,000.00
Inventory
$
1,750,000.00
$
4,025,000.00
Non-Current Assets
Manufacturing Equipment
$
4,500,000.00
Less: Acc. Depreciation Equipment
$
3,150,000.00
$
1,350,000.00
Total Assets
$
5,375,000.00
Liabilities
Current Liabilities
Accounts Payables
$
925,000.00
Interest payable
$
93,750.00
Income taxes payable
$
387,188.00
$
1,405,938.00
Non-Current Liabilities
Long-Term Notes Payable
$
1,250,000.00
$
1,250,000.00
Shareholder's Capital
Common Stock
$
1,500,000.00
Less: Withdrawals
$
(75,000.00)
Retained Earnings
$
575,000.00
Add: Net Profit
$
719,062.00
Less: Dividend paid
$
-
$
2,719,062.00