FINANCIAL
STATEMENT ANALYSIS 1-9
þ
PROGRESS CHECK 1.1
Directions: Use the Balance Sheet for Fruit Packing, Inc. to answer the following
questions. Calculate the answer to each question, then mark the correct
answer. Check your solution with the Answer Key on the next page.
Fruit Packing, Inc. -- Balance Sheet
December 31, 1993
(In Millions $)
ASSETS
LIABILITIES AND EQUITY
Cash
7.4
Accounts Payable - Fruit
10.2
Marketable Securities
0.6
Accounts Payable - Material
9.6
Accounts Receivable
23.7
Notes Payable
23.0
Raw Goods Inventory
19.5
Accrued Wages and Taxes
1.7
Finished Goods Inventory
22.4
Other Current Liabilities
0.6
Prepaid Expenses
1.5
Total Current Liabilities
45.1
Other Current Assets
0.8
Total Current Assets
75.9
Long-term Debt
45.1
Preferred Stock
7.8
Gross Fixed Assets
101.2
Total Long-term
Liabilities
98.0
Less Depreciation
19.9
Net Fixed Assets
_____
Common Stock
15.1
Retained Earnings
44.1
Total Common Equity
59.2
Total Assets
157.2
Total Liabilities and Equity
157.2
1.
The value for the
N
ET
F
IXED
A
SSET
account is missing. What should the correct amount
be for the Balance Sheet to be correct?
_____ a) 121.1
_____ b) 177.1
_____ c) 137.3
_____ d) 81.3
_____ e) 56.0
2.
Suppose that $1.2 million worth of apples spoiled before the company was able to
package them. What asset account would be affected?
_____ a) Cash
_____ b) Accounts Receivable
_____ c) Raw Goods Inventory
_____ d) Prepaid Expenses
_____ e) Gross Fixed Assets