Problem-1: Major Balance Sheet Classification:

Current Assets (CA):

Cash
Accounts Receivables
Interest Receivable
Prepaid Rent
Inventory
Supplies
Property, Plant, and Equipment (PPE)
Land
Buildings
Less: Accumulated Depreciation - buildings
Equipment
Long Term Investment (LTI):
Investments
Intangible Assets (IA):
Goodwill
Current Liabilities (CL)
Account Payable
Note payable
Longterm Liabilities (LTL):
Mortgage Payable
Common Stock (CS):
-
Retained Earnings (RE):
-
Problem-2, part (a): Earnings (loss) per share for 2017 & 2018.

2018 2017
Net Loss: (18,804,000) (15,260,000)
Avg. Outstanding Share :
= (last year + Current Year)/2 64,439,500 64,490,000

Loss Per Share: ($0.3) ($0.21)

= Net Loss / Avg. O/s Share

Problem-2, part (b): Change in company profitability from 2017 to 2018.

2018 2017
Negative Profitability
= Net Loss / Net Sale -2% -1.6%

The company net profitability is negative in term of loss due to increase in high cost over
revenue. During 2018, the Net increase in loss is more than last year (i.e. 2017). As above
calculation reveals that net sales are reasonable but net earnings (loss) are very minor because
all revenue is insufficient to meet the total expenses during respective period.

Problem-2, part (c): Effect of net dividend on Earning per share.

The dividend payment of preferred stock is deducted for the net earning, therefore, net income
decreased which resultantly decreased the earning per share. But, in the above scenario, as
there is negative income (net loss), therefore, the dividend payment of preferred stock while
increased the loss per share.

As far as the dividend payment of common stock concern, it has not effect on the net income
(loss).
Problem-3: Classified Balance Sheet

Yahoo Inc.
Balance Sheet
As on December 31, 2017.

ASSETS $
Current Assets
Cash and cash equivalents 823,723
Accounts receivable 483,951
Prepaid expenses and other current assets 94,549
Short-term Investment 2,688,252
Total Current Assets 4,090,475
Property, Plant and Equipment
Property and Equipment, net 531,696
Total Property, Plant and Equipment 531,696
Long-term Investments and Other assets
Long-term Investments 1,042,575
Intangible assets 3,031,623
Other Assets 481,832
Total Assets 9,178,201

LIABILITIES AND OWNER'S EQUITY $

Current Liabilities
Accounts Payable 48,205
Accrued expenses and other current liabilities 853,115
Unearned revenue-current 279,387
Total Current Liabilities 1,180,707
Long-term Liabilities
Long-term debt 750,000
Other long-term liabilities 146,048
Total Long-term Liabilities 896,048
Owner's Equity
Common Stock 5,684,300
Retained earnings 1,417,146
Total Owner’s Equity 7,101,446
Total Liabilities and Owner's Equity 9,178,201
Problem-4: Income Statement, retained earnings statement, and classified balance sheet
Mueller Inc.
Income Statement
For the year ended December 31, 2017
$ $
Service Revenue 51,000
Expenses:
Salaries and Wages 34,000
Depreciation Expenses 4,300
Maintenance and repairs expenses 2,600
Utilities Expenses 2,100
Insurance Expenses 1,800
Total Expenses 44,800
Net Income 6,200
Mueller Inc.
Retained Earnings Statement
For the year ended December 31, 2017
$
Retained Earnings at the beginning of the year 14,000
Add: Net Income 6,200
Retained earnings available during year 20,200
Less: Dividends 2,600
Retained earnings at the end of the year 17,600

Mueller Inc.
Balance Sheet
For the year ended December 31, 2017

Assets Amount ($) Amount ($)

Current Assets
Cash 6,100
Accounts receivable 2,900
Prepaid insurance 2,400
Total Current Assets 11,400
Property, Plant and Equipment
Equipment 30,000
Less: Accumulated Depreciation (7,600) 22,400
Total Assets 33,800
Liabilities and Owner's Equity $ $
Current Liabilities
Accounts Payable 7,200
Salaries and Wages Payable 3,000
Total Current Liabilities 10,200
Owner's Equity
Common Stock 6,000
Retained earnings 17,600 23,600
Total Liabilities and Owner's Equity 33,800
Problem-5: (a) Income Statement, retained earnings statement
Snyder Corporation
Income Statement
For the year ended July 31, 2018
$ $
Revenues:
Commission Revenue 61,100
Rent Revenue 8,500
Total Revenues: 69,600
Expenses:
Salaries expense 51,700
Utilities Expenses 22,600
Depreciation Expense 4,000
Total Expenses 78,300
Net Loss: (8,700)

Snyder Corporation
Retained Earnings Statement
For the year ended July 31, 2018
$
Retained Earnings, August 01, 2017 35,200
Less: Net Loss (8,700)
Retained earnings available during year 26,500
Less: Dividends 4,000
Retained earnings, July 31, 2018 22,500

Problem-5: (b) Classified Balance Sheet

Snyder Corporation
Balance Sheet
As at July 31, 2018
Assets Amount ($)
Current Assets
Cash 24,200
Accounts receivable 9,780
Total Current Assets 33,980
Property, Plant and Equipment
Equipment 18,500
Less: Accumulated Depreciation (6,000)
Total Property, Plant and Equipment 12,500
Total Assets 46,480
 Liabilities and Owner's Equity $ $
Current Liabilities
Accounts Payable 4,100
Salaries Payable 2,080
Total Current Liabilities 6,180
Long-term Liabilities
Long-term Notes Payable 1,800
Owner's Equity
Common Stock 16,000
Retained earnings 22,500
Total Owner's Equity 38,500
Total Liabilities and Owner's Equity 46,480

Problem-5: (c) Current Ration and Debt to Total Assets

Current Ratio = Current Assets

Current Liabilities

Current Ratio = 33,980 = 5.5 : 1

6,180

Debts to total assets Ratio = Total Debts

Total Assets

Debts to total assets Ratio = 7,980 = 17%

46,480