Question

2020; and a ch3-03 student ame. printed in the lower left footer and the HI footer Print each completed worksheet in Chapter 3 Case Problem 1: KELLY'S BOUTIQUE ou are to create Kelly's Boutique's financial analyses as of D You file ch3-04 xls to create a vertical and horizontal analysis l compare December 31, 2018, with December 31 chart of expenses for the years ended December 31, 2018, and Dec December 31, examples, use the of the balance 2019.) Also cre- 2018, and as of student file ch3-04.xls to December 31, 2019. Following the Chapter 3 ex sheet and income analysis will compare ate a pie chart of expenses for the year ended December 31, 2019; a co statement in the columns provided. (Note: December 3 1, 2019: and ch3- -04 stud Print each a ratio analysis as of December 31, 2019. Save the f ent name.xls (replacing student name with your name). completed works heet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer.

Answer 1

Answer is

Particulars	31-Dec-18	31-Dec-19		% of sales		% Change
Sales revenue	345,274.22	400,000.00				15.85%
Less: Cost of goods sold	164,217.74	210,000.00		47.56%		27.88%
Gross Margin	181,056.48	190,000.00		52.44%		4.94%
Expenses:
Advertising	25,871.45	28,000.00		7.49%		8.23%
Depreciation	8,431.22	7,000.00		2.44%		-16.98%
Interest	15,574.15	16,000.00		4.51%		2.73%
Payroll	105,487.51	109,000.00		30.55%		3.33%
Supplier expense	4,732.84	5,000.00		1.37%		5.64%
utilities	10,847.00	9,000.00		3.14%		-17.03%
Net income before taxes	10,112.31	16,000.00		2.93%		58.22%
Income taxes	3,784.44	5,000.00		1.10%		32.12%
Net income	6,327.87	11,000.00		1.83%		73.83%
Assets	31-Dec-18	31-Dec-19		% of assets		% Change
Cash	8,213.50	6,000.00		1.49%		-26.95%
Accounts receivable	35,571.95	45,000.00		6.47%		26.50%
Inventory	60,214.55	92,000.00		10.95%		52.79%
Prepaid rent	700.00	1,500.00		0.13%		114.29%
Supplies	300.00	500.00		0.05%		66.67%
Property Plant & Equipment
Land	31,000.00	25,000.00		5.64%		-19.35%
Building	400,000.00	427,000.00		72.73%		6.75%
Equipment	35,000.00	33,000.00		6.36%		-5.71%
Less: Accumulated depreciation	(21,000.00)	(30,000.00)		-3.82%		42.86%
Total	550,000.00	600,000.00		100.00%		9.09%
Liabilities and Stockholder's Equity	31-Dec-18	31-Dec-19
Liabilities
Current liabilities
Accounts payable	29,663.39	40,000.00		5.39%		34.85%
Income tax payable	4,124.14	5,000.00		0.75%		21.24%
Notes payable	72,000.00	87,000.00		13.09%		20.83%
Payroll liabilities	3,212.47	6,000.00		0.58%		86.77%
Mortgage payable	120,000.00	125,000.00		21.82%		4.17%
Stockholder's equity
Common stock	301,000.00	306,000.00		54.73%		1.66%
Retained earnings	20,000.00	31,000.00		3.64%		55.00%
Total	550,000.00	600,000.00		100.00%		9.09%
Profitabiltiy
Return on owner's investment		9.50%		EBIT/Capital employed
Return on total investment		7.03%		EBIT/total fixed assets
Profit margin		2.75%		Net income/Sales
Gross margin		47.50%		Gross profit/Sales
Liquidity
Current ratio		1.01		current ratio is calculated by adding short-term investments, and current receivables together then dividing them by current liabilities without debt
Quick ratio		1.05		quick ratio is calculated by adding cash, cash equivalents, short-term investments, and current receivables together then dividing them by current liabilities.
Receivable turnover		8.89		Net credit sales/Receivable
Inventory turnover		2.28		Net cogs/Inventory
Solvency
Debt to equity		0.41		Total debt