Exotic Adventures, a chain of stores servicing the ecotourism industry, has provided you with the following list of accounts and balances for the year ended June 30, 2012. All amounts shown are in thousands of dollars. You have been asked by the company’s chief financial officer (CFO) to use a spreadsheet to prepare financial statements for Exotic Adventures, including an income statement, a statement of retained earnings, a classified balance sheet, and (if required by your instructor) a statement of cash flows. The CFO can’t remember the accounts receivable balance. She asks you to figure it out when you prepare the balance sheet.
The financial information presented here is accumulated in a file named FINANCIAL on the website for this book at cengagebrain.com. You are encouraged to use this file for preparing your statements and to use the information in this file as a Data Section for your answer. Place the statements in the space below the data. The financial statements should be shown in thousands of dollars just as in the Data Section. Exotic Adventures is a privately held company, so earnings per share information is not required.
Additional information required for the statement of cash flows:
Review the Model-Building Problem Checklist on page 154 to ensure that your model is complete. When done, preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Check figure: Total assets, $3,385.2.
To test your model, suppose the auditors made the following three adjustments to the June 30, 2012, balances: sales were reduced by $100,000 to 9,073.2; inventories were increased by $60,000 to 750.2; and accounts payable were increased by $160,000 to 924.8. Record these adjustments to your model. Does your balance sheet still balance? Print the worksheet again. Check figure: Total assets, $3,445.2.
CHART (optional)
Using the test data worksheet, create a pie chart showing all major sources of funding for Exotic Adventures at year-end: current liabilities, long-term liabilities, and stockholders’ equity. Print the chart when done.
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The post Financial modelling appeared first on Best Assignment Doers.
