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This document contains financial information for North County Rentals including a balance sheet, income statement, and key financial ratios. The balance sheet shows assets of $878,800 including cash, receivables, property and equipment. Liabilities include current liabilities of $11,725 and long term notes payable of $357,000. The income statement shows rental revenue of $393,400 and net income of $133,545. Key ratios calculated include a current ratio of 2.81 and a debt to equity ratio of 0.72.

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52 views2 pages

P 7

This document contains financial information for North County Rentals including a balance sheet, income statement, and key financial ratios. The balance sheet shows assets of $878,800 including cash, receivables, property and equipment. Liabilities include current liabilities of $11,725 and long term notes payable of $357,000. The income statement shows rental revenue of $393,400 and net income of $133,545. Key ratios calculated include a current ratio of 2.81 and a debt to equity ratio of 0.72.

Uploaded by

laale dijaan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Ques 1

Wyett North capital 510075

Balance 404030
Add:net income 133545
Less:withdrawals 27500
Adjusted balance 510075

Rent revenue 393400

Less : expnenses
Advertising expense 15700
Depreciation expense, building 24500
Depreciation expense, furniture 3000
Interest expense 10210
Janitorial expense 40500
Office salaries expense 124125
Utilities expense 36220
Office supplies expense 5600

Net income 133545


North County Rentals
Balance Sheet
31-Mar-20
Assets
Current assets:
Cash $ 16,500
Rent receivable $ 15,500
Office supplies $ 650
Prepaid advertising $ 350

Total current assets $ 33,000


Long term investments
Notes receivable $ 138,000
Property, plant and equipment:
Land $ 105,000
Building $ 586,000
Less: Accumulated depreciation $ 24,500 $ 561,500
Furniture $ 41,800
Less: Accumulated depreciation $ 3,000 $ 38,800
Total property, plant and equipment $ 705,300
Intangible assets:
Brand name $ 2,500
Total assets $ 878,800

Liabilities
Current liabilities:
Accounts payable $ 8,600
Interest payable $ 750
Salaries payable $ 2,375

Total current liabilities $ 11,725


Long term liabilities:
Long-term notes payable $ 357,000
Total liabilities $ 368,725

Equity
Wyett North, capital $ 510,075
Total liabilities and equity $ 878,800

Current Ratio = 2.81 33000/11725


Debt to Equity Ratio = 0.72 368725/510075

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