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    Maria Hernandez

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    Aimane Beggar
    Maria Hernandez's business incurred a net profit of $4,600 over a two month period from July to August. Revenues were $47,000 while expenses such as supplies, salaries, rent, utilities and depreciation totaled $42,400. The business had $12,000 cash on hand at the start of the period and $6,600 cash on hand at the end of August. The business also had $30,000 in owner's equity and $20,000 in loans.

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    Maria Hernandez

    Uploaded by

    Aimane Beggar
    102 views8 pages
    Maria Hernandez's business incurred a net profit of $4,600 over a two month period from July to August. Revenues were $47,000 while expenses such as supplies, salaries, rent, utilities and depreciation totaled $42,400. The business had $12,000 cash on hand at the start of the period and $6,600 cash on hand at the end of August. The business also had $30,000 in owner's equity and $20,000 in loans.

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    case solution maria hernandez

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    Maria Hernandez's business incurred a net profit of $4,600 over a two month period from July to August. Revenues were $47,000 while expenses such as supplies, salaries, rent, utilities and depreciation totaled $42,400. The business had $12,000 cash on hand at the start of the period and $6,600 cash on hand at the end of August. The business also had $30,000 in owner's equity and $20,000 in loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    102 views8 pages

    Maria Hernandez

    Uploaded by

    Aimane Beggar
    Maria Hernandez's business incurred a net profit of $4,600 over a two month period from July to August. Revenues were $47,000 while expenses such as supplies, salaries, rent, utilities and depreciation totaled $42,400. The business had $12,000 cash on hand at the start of the period and $6,600 cash on hand at the end of August. The business also had $30,000 in owner's equity and $20,000 in loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Maria Hernandez

    Templates
    Maria Hernandez: Profit & Loss Statement
    Loss Period Jul – Aug (2 months) Profit
    Stationary $1700 Revenues $47000
    Salaries, Utils, Rep. $33000
    Rent $6000
    Interest $200
    Depreciation $1500

    Profit (Net Income) _______


    $4600 _____
    $47000

    - Intrest on loans = ($20000*0.06)*2 (Accrued Interest on BS)


    - Depreciation ( 2 months ) = $750 x 2 = $1500.

    Profit goes to the Retained Earnings account on the Balance Sheet


    Stationary Used
    Used = Inty begin + Purchases – Inty end
    ….. = …… + ……. – …..
    Income Statement

    € Revenues
    Purchases -
    C
    O Used
    G
    S =
    Gross Profit
    Inty
    Begin Inty
    End

    Jan Dec
    Inty = Inventory
    Maria Hernandez: Balance Sheet
    Debit Balance Sheet August 31st. Credit
    Cash $12000 Loan $20000
    Prepaid Rent $6000 Accounts Payable $5500
    Acts. Rec. $7000 Accrued Interest $200
    Office Supplies $5100 Owner’s Common Equity $30000
    Equipment $11000 Retained Earnings $4600
    Depreciation $1500
    Net Equipment $38000

    Retained Earnings = $4600


    Result (Profit) from Profit & Loss Statement (Income Statement)
    Maria Hernandez: Cash Account
    Debit Cash Account as per August 31st. Credit
    Cash Begin $12000 Stationary $900
    Customers $40000 Equipment $5500
    Rent $6000
    Utils, salary, repair $33000
    Cash End $6600

    $12000
    Cash Begin …….
    Cash End …….
    $6600
    Cash Movement …….
    $5400
    Maria Hernandez: Statement of Cash Flows
    Cash Flow from Operations:
    Net Income (Profit)
    Non-Cash Expense
    - Depreciation add-back
    Changes in Working Capital
    - Supplies ($5100)
    - Accounts Receivable ($7000)
    - Accounts Payable (– $5500)

    Cash Flow to Investments:


    Equipment ($38000)

    Cash Flow from Financing:


    -Accrued Interest (– $200)

    Cash Beginning $12000


    Cash End $6600
    Cash Movement $5400
    ROE = Return on Equity

    What you get back as Owner of your Investment

    *
    X 100%

    $4600
    18.4% = X 100%
    ($30000 + $20000)/ 2

    * PAT = Profit After Tax


    Shareholders’s Value: ROE = Net Income / EQUITY
    ROE = ROA x FLR

    NI NI SALES ASSETS
    = x x
    EQUITY SALES ASSETS EQUITY

    Net Profit Asset Financial


    Margin Leverage
    Turnover
    Ratio

    ........ ........ ........... ........


    .......... ........ ........... ........

    ...% = ....% x ...... x .......

    Shareholders COO CEO CFO


    Operations Investing Financing

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