Chemalite inc balance sheet. 248896114 2022-10-20
Chemalite inc balance sheet
Chemalite, Inc. is a company that specializes in the production and sale of a variety of chemical products. The company's balance sheet is a financial statement that provides a snapshot of the company's financial position at a specific point in time. It lists the company's assets, liabilities, and equity.
Assets are resources that the company owns or controls and can be converted into cash. They are divided into two categories: current assets and non-current assets. Current assets are those that are expected to be converted into cash or used up within one year, such as cash, accounts receivable, and inventory. Non-current assets are long-term assets that are not expected to be converted into cash or used up within one year, such as buildings, machinery, and patents.
Liabilities are obligations that the company owes to others. They are also divided into two categories: current liabilities and non-current liabilities. Current liabilities are obligations that are due within one year, such as accounts payable, taxes payable, and short-term debt. Non-current liabilities are long-term obligations, such as long-term debt and pension obligations.
Equity represents the residual interest in the assets of the company after liabilities are subtracted. It is divided into two categories: shareholders' equity and retained earnings. Shareholders' equity represents the capital invested in the company by its owners, including common stock and paid-in capital. Retained earnings are the profits that the company has earned and retained since its inception, minus any dividends that have been paid to shareholders.
Overall, the balance sheet provides important information about the company's financial position and its ability to meet its financial obligations. By analyzing the balance sheet, investors and creditors can gain insights into the company's liquidity, solvency, and financial risk.
(XLS) Chamelite inc. balance sheet
Provide the cumulative revenue recognized and deferred revenue balance related to the Buffett arrangement as of April 30, 2012. Bennett Alexander in 1990. In this statement, the operating income from the income is used to deduce the cash from operations. Download Chemalite, Inc problem with solutions - Financial and Management Accounting and more Financial Accounting Exercises in PDF only on Docsity! Also worthwhile mentioning is the significant reduction of the Accounts Receivable of 18. Thus, it can be noted that the performance of Chemalite Inc. Further, a review of the transactions for the first year shows that the company did not have liabilities. The balance sheet is uded to show how the business is being funded and how those funds are being used.
Chemalite, Inc. (B) Cash Flow Analysis Case Study Solution and Case Analysis
Following questions are answered in this case study solution: 1. Strong outlook The calculations in the sections above show that Chemalite Inc. However, in the second half of the year, the company made some sales, and the investors thought that the business was performing well. These ratios are the interest coverage ratio and debt to equity ratio. Transaction Analysis Assets Liabilities + Equity Transaction Cash Accts Rec Inventory Machinery Accum Depr Patent Total Notes Payable Common Stock Revenues Expenses Total Beginning Balance - - - - 2-Jan 375,000 125,000 500,000 500,000 500,000 15-Jan 7,500 7,500 7,500 7,500 15-Jun 62,500 62,500 - - 24-Jun 75,000 75,000 - - - - Interm Transactions 230,000 - 75,000 62,500 - 125,000 492,500 - 500,000 - 7,500 492,500 Developing 23,750 23,750 23,750 23,750 Sale 685,000 69,500 754,500 754,500 754,500 175,000 175,000 - - Advertising 22,500 22,500 22,500 22,500 Direct labor 350,000 350,000 350,000 350,000 Salaries 80,000 80,000 80,000 80,000 Machinery 150,000 150,000 - - Loan 50,000 50,000 50,000 50,000 Interest expense 50,750 50,750 50,000 750 50,750 Inventory Adj.
Working one on one with the owner has offered quite a bit of experience in the accounting world. Alexander and the investors have to examine the true nature of the company and not simply its increase or decrease in cash from year to year. This will enable the company to manufacture more than enough Chemalites for this order. I am an accountant who is responsible to generate profits for the company, but it is reasonable for a professional accountant to considerate ethics first. KCCL was founded in 1956 and became pioneer in manufacturing high quality beauty and personal care products in this subcontinent. Their You can even compare their balance sheets from the end of June 2003 to the one given at the end of the year Sample II and VII.
In the statement of operations provided in the case we can see that the salaries given to the officers, sales and marketing, and wires division are relatively low, suggesting that the management team is relatively dedicated to the company. Thirdly, the value of the prototype is likely to go up. The interest coverage ratio for Chemalite Inc. Therefore, zero debt, high liquidity, positive cash flow, and a high solvency level will give the company stability and an opportunity to grow in the future. The industry average for the interest coverage ratio was 28. In the case of the debt to equity ratio, the value in 2003 was 0% since the company did not have debt at the end of the financial year. From this… Biohemi, Inc.
Prepare a proforma statement of cash flows for 1992 using the indirect method. The case study shows that Chemalite Inc. The industry average for the ratio is 35%. This financing debt has likewise peaked during Year One. Assume use of the indirect approach. This value is equivalent to the value of total equity. An income statement mainly shows the net profits or loss of a company.
Chemalite Case Financial Statements
Cash Flow Statement Jan-June 2003. Income Statement Balance Sheet Statement of Cash Flows For Year Ended December 31, 2003 December 31, 2003 For Year Ended December 31, 2003 Revenues 754,500 Cash 113,000 Operating Cash Flows Expenses: Accounts Rec. Balance Sheet Jan-June 2003 Chemalite Inc. The value is quite favorable for a new company. Yet again, between years six and seven a strength is noted in gross profit, increasing by 37. Try to analyse it in your own words. This could indicate that the company may have liquidized some of their assests within the year.
It is important to note that the proforma income statement of 1992 shows a high income, but the cash flow statement depicts low cash in hand. It is important that you clearly state your assumptions used in your 3 year forecast. Therefore, the company has a high potential of generating more profit at the beginning of 2004. Therefore, the business should continue because it has a bright future Arnold, 2008. Income Statement Jan-June 2003 Chemalite Inc.
Chemalite balance sheet Free Essays
Bennett Alexander has invented a glow light using a series of chemicals into a contraption he calls Chemalites. Financial management for decision makers. SOFTWARE Our analysis was performed entirely in Excel 2007. In early 2003, Chemalite, Inc. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. The gross profit between years seven and eight decreased by 16.
Chemalite case study
Also attached is an Excel Copy of Chemalite Forecast Example which gives an example of what is needed. From those preparation activities, Chemalite, Inc. The expenditures, transactions and cash outflows are given in two halfs of the year 2003. . It shows that once the product has penetrated the market well, the company will be able to generate higher returns for the shareholders.