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ACCT 221 WEEK 3 HOMEWORK

ACCT 221 WEEK 3 HOMEWORK

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Author: Joyce Buda
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This is a comprehensive problem all contained on this spreadsheet tab. You are to prepare a cash flow statement, a vertical
analysis, a horizontal analysis, and some ratio calculations. Scroll down the spreadsheet to complete each part.
 
 
 
 
 
Philadelphia Widget Corporation is in the process of preparing financial statements for the year ended 12/31/2015.
They have completed the balance sheet and income statement as shown.
 
 
 
 
 
 
 
A. Prepare a Statement of Cash Flow using the indirect method for 2015 using the above statements and the following additional information:
   1. Equipment costing $30,000 was purchased in 2015.
 
 
 
 
   2. Equipment having an original cost of $20,000 and accumulated depreciation of $8,500 was sold for $16,000 during 2015.
   3. A dividend of $20,000 was declared and paid in 2015.
 
 
 
 
 
 
 
 
 
 
B. Prepare a vertical analysis (1 year) of the income statement above and a horizontal analysis (2 years) of the balance sheet.
 
C. Calculate the following ratios based on 12/31/2015 numbers:
 


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