Joes fly-by-night oil | Accounting homework help
purposes of this exercise, assume the following historical sales and net income figures for Joe’s Fly-By-Night Oil:
Year Sales Net Income
2008 $8,200 $1,500
2009 $8,000 $1,400
2010 $9,000 $1,600
2011 $10,000 $1,800
Comment on the results displayed on the graph.
• Prepare a pie chart of Joe’s Fly-By-Night Oil’s expense distribution for 2011 and comment on the results displayed.
• Prepare a pie chart of Joe’s Fly-By-Night Oil’s asset distribution for Dec 31, 2011 and comment on the results displayed.
• Prepare a pie chart of Joe’s Fly-By-Night Oil’s capital structure for Dec 31, 2011
and comment on the results displayed.
Income Statement 2012
Sales 10,000
Cost of Goods Sold 4,000
GP 6,000
SG&A Expenses 3,000
EBIT 3,000
Intrest 200
Before Tax Earnings 2,800
Taxes 1,000
Net Income 1,800
EPS $1.80
Dividends $600
Addition to retained Earnings $1,200
Balance sheet 2012
Assets
Cash $5,000
A/R 3,000
Inventory 17,000
Current Assests 25,000
Equipment 27,000
Less accumulated Dep. (12,000)
Equipment Net 15,000
Total Assets 40,000
Liabilities and Equity
A/p 17,000
Current Liabilities 17,000
Long Term Debt 3,000
Total Liabilities 20,000
Common Stock 7,000
Retained Earnings 13,000
Total Equity 20,000
Total Liabilities & Equity 40,000
