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MGT 201 Spring Semester 2008
Assignment 01
Solution:
Balance Sheet
Vanier Corporation
As on 31st December 1996
(In thousands)
Assets Liabilities
Cash and marketable securities Rs.500 Accounts payable Rs.400
Accounts receivable 1000 Bank loan 500
Inventories 1800 Accruals 200
Current assets 3300 Current liabilities 1100
Net fixed assets 4200 Long term debt 2650
Common stock &
retained earnings
3750 Total
liabilities & Total assets 7500
equity 7500
Income Statement
Vanier Corporation:
For the year ending 1996
(In thousands)
Credit sales Rs. 8000
Cost of goods sold 5400
Gross profit 2600
Selling and administrative expenses 1200
Interest expense 400
Profit before taxes 1000
Taxes (44% rate) 440
Profit after taxes 560
Working:
Total liabilities /
Common stock
And retained earnings = 1/1
Current liabilities +
Long term liabilities / = 1/1
Common stock
And retained earnings