Description Module 2 Critical Thinking Assignment: Understanding Financial Statements, Cash Flows and Taxes *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. Problem 2-1: Preparing Financial Statements Information below is for Warner Manufacturing, Inc. for the year ended December 31, 20×1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated. Using the information below: 1. Prepare an income statement with the proper title 2. Prepare end of year balance sheet with the proper title 3. Calculate net working capital 4. Calculate the debt ratio *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. DATA Depreciation expense 66,000 Cash 220,000 Long-Term Debt 330,000 Net Sales 615,000 Accounts payable 102,000 Marketing and general and administrative expenses 79,000 Buildings and Equipment 895,000 Notes payable 7,5000 Accounts receivable 156,000 Interest expense 4,750 Accrued expenses 7,900 Common Stock 289,000 Cost of Goods sold 297,000 Inventory 99,300 Taxes 67,300 Accumulated Depreciation -26,3000 Prepaid expenses 14,500 Taxes payable 55,000 Retained earnings 262,900 Problem 2-2 Preparing Statement of Cash Flows Given the following information, prepare a statement of cash flows. DATA Increase in accounts receivable 30 Increase in inventories 30 Operating Income 95 Interest Expense 30 Increase in accounts payable 25 Dividends 15 Increase in common stock 20 Increase in net fixed assets 23 Depreciation Expense 12 Income taxes 17 Beginning cash 20 Assume all amounts are in 000’s SAR. 1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview Module 2 Critical Thinking Assignment: Understanding Financial Statements, Cash Flows and Taxes *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. Problem 2-1: Preparing Financial Statements Information below is for Warner Manufacturing, Inc. for the year ended December 31, 20×1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated. Using the information below: 1. Prepare an income statement with the proper title 2. Prepare end of year balance sheet with the proper title 3. Calculate net working capital 4. Calculate the debt ratio *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. DATA Depreciation expense Cash Long-Term Debt Net Sales Accounts payable Marketing and general and administrative expenses Buildings and Equipment Notes payable Accounts receivable Interest expense Accrued expenses Common Stock Cost of Goods sold Inventory Taxes Accumulated Depreciation Prepaid expenses Taxes payable Retained earnings 66,000 220,000 330,000 615,000 102,000 79,000 895,000 7,5000 156,000 4,750 7,900 289,000 297,000 99,300 67,300 26,3000 14,500 55,000 262,900 Problem 2-2 Preparing Statement of Cash Flows Given the following information, prepare a statement of cash flows. DATA Increase in accounts receivable Increase in inventories Operating Income Interest Expense Increase in accounts payable Dividends Increase in common stock Increase in net fixed assets Depreciation Expense Income taxes Beginning cash Assume all amounts are in 000’s SAR. 30 30 95 30 25 15 20 23 12 17 20 Purchase answer to see full attachment Tags: cash flows Financial Statements Income Statement Balance Sheet taxes User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

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Module 2 Critical Thinking Assignment: Understanding Financial Statements, Cash Flows and Taxes *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. Problem 2-1: Preparing Financial Statements Information below is for Warner Manufacturing, Inc. for the year ended December 31, 20×1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated. Using the information below: 1. Prepare an income statement with the proper title 2. Prepare end of year balance sheet with the proper title 3. Calculate net working capital 4. Calculate the debt ratio *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. DATA Depreciation expense 66,000 Cash 220,000 Long-Term Debt 330,000 Net Sales 615,000 Accounts payable 102,000 Marketing and general and administrative expenses 79,000 Buildings and Equipment 895,000 Notes payable 7,5000 Accounts receivable 156,000 Interest expense 4,750 Accrued expenses 7,900 Common Stock 289,000 Cost of Goods sold 297,000 Inventory 99,300 Taxes 67,300 Accumulated Depreciation -26,3000 Prepaid expenses 14,500 Taxes payable 55,000 Retained earnings 262,900 Problem 2-2 Preparing Statement of Cash Flows Given the following information, prepare a statement of cash flows. DATA Increase in accounts receivable 30 Increase in inventories 30 Operating Income 95 Interest Expense 30 Increase in accounts payable 25 Dividends 15 Increase in common stock 20 Increase in net fixed assets 23 Depreciation Expense 12 Income taxes 17 Beginning cash 20 Assume all amounts are in 000’s SAR.

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Module 2 Critical Thinking Assignment:
Understanding Financial Statements, Cash Flows and Taxes
*Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard
keys.
Problem 2-1: Preparing Financial Statements
Information below is for Warner Manufacturing, Inc. for the year ended December
31, 20×1 except where beginning of year numbers indicated. All amounts in SAR
unless otherwise stated.
Using the information below:
1. Prepare an income statement with the proper title
2. Prepare end of year balance sheet with the proper title
3. Calculate net working capital
4. Calculate the debt ratio
*Complete the problems in an Excel spreadsheet. Be sure to show your work to
receive credit; no hard keys.
DATA
Depreciation expense
Cash
Long-Term Debt
Net Sales
Accounts payable
Marketing and general and administrative expenses
Buildings and Equipment
Notes payable
Accounts receivable
Interest expense
Accrued expenses
Common Stock
Cost of Goods sold
Inventory
Taxes
Accumulated Depreciation
Prepaid expenses
Taxes payable
Retained earnings
66,000
220,000
330,000
615,000
102,000
79,000
895,000
7,5000
156,000
4,750
7,900
289,000
297,000
99,300
67,300
26,3000
14,500
55,000
262,900
Problem 2-2 Preparing Statement of Cash Flows
Given the following information, prepare a statement of cash flows.
DATA
Increase in accounts receivable
Increase in inventories
Operating Income
Interest Expense
Increase in accounts payable
Dividends
Increase in common stock
Increase in net fixed assets
Depreciation Expense
Income taxes
Beginning cash
Assume all amounts are in 000’s SAR.
30
30
95
30
25
15
20
23
12
17
20

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cash flows

Financial Statements

Income Statement

Balance Sheet

taxes

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