[answered] Metro State - ACC 210 FALL 2016 STUDENT NAME: ACCOUNTING CA

Need help with question 2 dealing with ratios and 3 if the bank should give the loan or not and why

Metro State - ACC 210

 

FALL 2016

 

STUDENT NAME:

 

ACCOUNTING CASE 3 - SELF-EMPLOYED: Metro Accounting LLC Peter Ramirez asked for a loan of $40,000 to grow the business. The US Bank loan officer requested the financial statements as of April 30, 2014

 

The loan officer wants to see the Balance Sheet, Income Statement , the Statement of Cash Flow, and the basic financial ratios Requirements:

 

1) Use the financial statements attached and prepare the Statement of Cash Flows for the period March 1 - April 30 2014. Use the guidelines learned in Chapter 12 of your

 

textbook. YOU CAN DEVELOP YOUR CASH FLOW STATEMENT IN THE OPEN TAB OF THE TEMPLATE OR OTHER MEAN.

 

2) Calculate the following financial ratios as of April 30, 2014 ( use the guidelines learned in Chapter 13 of your textbook): Acid Test Ratio, Current Ratio, Current Ratio,

 

Debt Ratio, Profit Margin, and Return on Common Stockholder's Equity.

 

3) Brief comments on the following: based on your financial analysis do you think the Bank would give Peter the loan? Respond Yes or NO and your reasoning about that. Statement of Cash Flows

 

For Period March 1, 2014 - April 30, 2014

 

Cash flows from Operating Activities

 

Net

 

Income to reconcile net income to net cash provided by

 

Adjustments

 

operating activities

 

Increase in accounts recievable

 

Increase in pre-paid expenses

 

Increase in accounts payable

 

Net cash provided by operating activities

 

Cash flows from investing activities

 

Cash received from sale of plant assets

 

Cash paid for purchase of campany assets

 

Net cash provided by investing activities

 

Cash flows from financing activities

 

Cash received from issuing stock

 

Cash paid for owner's distributions

 

Net cash used in financing activities

 

Net increase in cash

 

Cash balance at prior month-end

 

Cash balance at current year-end $ 7,435 $ (3,500)

 

$

 

(450)

 

$ (26,895)

 

$ (23,410)

 

$

 

$ (31,130)

 

$ (31,130)

 

$ 18,000

 

$ (1,450)

 

$ 16,550

 

$ (37,990)

 

$

 

$ (37,990) STUDENT NAME:

 

Metro Accounting LLC

 

Income Statement

 

For the Period: March 1 - April 30, 2014

 

Amount

 

Revenues

 

Accounting Services Fees $10,650 Total Revenues

 

Expenses

 

Legal and Professional Fees

 

Licenses and Permits

 

Rent

 

Advetising Expense

 

Meals & Entertainment

 

Wages & Salaries Total Expenses

 

Net Income Total 10,650.00 700

 

500

 

450

 

500

 

65

 

1,000 3,215

 

$ 7,435.00 STUDENT NAME:

 

Metro Accounting LLC

 

Balance Sheet

 

March 31 2014

 

Assets Cash

 

Machinery & Equip-Computers

 

Machinery & Equip-Cell Phones

 

Furniture & Fixtures

 

Prepaid Rent

 

Accounts Receivable

 

Vehicle Total Assets Liabilities

 

$19,300

 

$900

 

$850

 

$880

 

$450

 

3,500

 

25,000 $50,880 Credit Card Payable

 

Notes Payable Toyota Corp $2,895

 

$24,000 Total Liabilities 26,895 Equity

 

Owner's contribution

 

Owner's distributions

 

Net Income

 

Total Equity

 

Total Liabilities and Equity $ 18,000

 

(1,450)

 

7,435

 

23,985

 

50,880 Acid Test Ratio, Current Ratio, Current Ratio, Debt Ratio, Profit Margin, and Return on Common Stockholder's Equity.

 

Debt Ratio= Total liabilities / total assets

 

Profit margin = net income / net sales ockholder's Equity.

 

---

Solution details:

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.