Microsoft Excel

Study Materials:

Using Microsoft Excel perform the following:.

Presented below is financial information related to Vi-Gro Corporation
for the year 2002. Unless

otherwise stated, all balances are ending balances.

Accounts payable $ 874,200

Accounts receivable 1,000,800

Accumulated depreciation—Equipment 1,560,000

Administrative expenses 420,000

Bonds payable 3,400,000

Cash 125,000

Common stock 2,200,000

Cost of goods sold 2,285,000

Dividends 290,000

Equipment 5,894,000

Gain on the sale of land 87,000

Interest expense 108,000

Interest revenue 94,000

Inventories 984,000

Marketable securities (short-term) 1,175,000

Net sales 3,670,000

Notes payable (short-term) 1,136,500

Other long-term debt 401,300

Patents and other intangibles 1,250,100

Prepaid expenses 356,100

Retained earnings (January 1, 2002) 833,000

Selling expenses 368,000

Vi-Gro Corporation had 88,000 shares of common stock outstanding for the
entire year. Its effective

income tax rate for state and federal income taxes combined is 35
percent.

B R O A D E N I N G Y O U R P E R S P E C

Instructions

(a) Prepare a multiple-step income statement.

(b) Prepare a single-step income statement.

(c) Prepare a retained earnings statement.

(d) Prepare a classified balance sheet.

(e) Compute the following balance sheet relationships:

(1) current ratio.

(2) the amount of working capital.

(3) debt to total assets ratio.

What insights do these relationships provide to the reader of the
financial statements?

(f) Compute three measures of profitability. What insights do these
relationships provide to the reader of the financial statements?

(g) Compare the results for Vi-Gro Corporation, calculated here, and the
results for Notting Hill Corporation in Demonstration Problem 2. As an
investor, which corporation seems more attractive to you? Why?