Chapter 11
Financial Statement Analysis
563
AP-19A (
2
)
The following financial statements are taken from the records of Abaya Inc.
Abaya Inc.
Balance Sheet
As at December 31
2016
2015
2014
Current Assets
Cash
$315,000
$325,000
$210,000
Accounts Receivable
140,000
198,000
92,000
Inventory
411,000
397,000
428,000
Short-Term Investments
115,000
100,000
100,000
Total Current Assets
981,000
1,020,000
830,000
Non-Current Assets
356,000
250,000
403,000
Total Assets
$1,337,000 $1,270,000 $1,233,000
Current Liabilities
214,000
265,000
90,000
Non-Current Liabilities
22,000
150,000
100,000
Total Liabilities
236,000
415,000
190,000
Shareholders’ Equity
1,101,000
855,000
1,043,000
Total Liabilities and Shareholders’ Equity
$1,337,000 $1,270,000 $1,233,000
Abaya Inc.
Income Statement
For the Year Ended December 31
2016
2015
2014
Sales
$701,000 $689,000 $514,000
Cost of Goods Sold
379,000
396,000 385,000
Gross Profit
322,000
293,000 129,000
Operating Expenses
Advertising Expense
4,200
3,100
1,800
Bank Charges Expense
2,400
1,600
1,500
Communication Expense
5,600
3,700
4,300
Professional Fees Expense
11,800
5,400
6,800
Utilities Expense
8,600
7,580
5,250
Rent Expense
5,000
5,000
5,000
Repairs and Maintenance Expense
3,000
3,000
3,000
Salaries and Wages Expense
41,000
11,500
9,800
Transportation Expense
8,950
6,400
6,150
Interest Expense
18,600
12,600
8,500
Depreciation Expense
2,500
2,500
2,500
Total Expenses
111,650
62,380
54,600
Operating Profit before Tax
210,350
230,620
74,400
Income Tax
63,105
69,186
22,320
Net Income
$147,245 $161,434 $52,080
