SASHA COMPANY

STATEMENT OF FINANCIAL POSITION

As of December 31, 2020

ASSETS
Current Assets:
Cash ?
Marketable Securities 50,000
Accounts Receivable, net ?
Inventory ? ?
_________
Non-current Assets:
Plant and Equipment, net ?_________
Total Assets ?
_________

LIABILITIES AND EQUITY

Current Liabilities: ?
Non-current Liabilities:
Bonds Payable, 12.5% ?___________
Total Liabilities ?

Equity:
Common Stock 500,000
Retained Earnings 300,000 800,000_____
Total Liabilities and Equity ?

SASHA COMPANY
COMPREHENSIVE INCOME STATEMENT
For the Year Ended December 31, 2020

Net Sales ?
Cost of Goods Sold ?
Gross Margin on Sales 525,000
Operating Expenses ?
Operating Income ?
Interest Expense ?
Net Income before Taxes ?
Income Tax (30% Tax Rate) ?
Net Income ?

Additional Information:
1. Operating expenses were 15% of net sales.
2. Acid-test ratio was 1.3 : 1
3. Times interest earned was 6 times.
4. Gross Margin was 35% of net sales.
5. The age of receivables was 36 days.
6. The beginning accounts receivable was 160,000. Use 360-day year.
7. Inventory turnover was 4 times. The beginning inventory amounted to 250,000.
8. Total debt to stockholders’ equity was .8 : 1.

Required: Based on the given the data, reconstruct the Statement of Financial Position and
Comprehensive Income Statement of SASHA Company for the year 2020.

SASHA COMPANY
STATEMENT OF FINANCIAL POSITION
As of December 31, 2020

ASSET
Current Asset
Cash 122,000.00
Marketable Securities 50,000.00
Accounts Receivable 140,000.00
Inventory 237,500.00
Noncurrent Asset
Plant and equipment, 890,500.00
Total Assets P 1,440,000.00
LIABILITIES AND EQUITY
Current Liabilities 240,000.00
Non Current Liabilities 400,000.00
Bonds Payable, 12.5%
Total Liabilities 640,000.00

Equity:
Common Stock 500,000.00
Retained Earnings 300,000.00 800,000.00
Total Liabilities and Equity P 1,440,000.00

SASHA COMPANY
COMPREHENSIVE INCOME STATEMENT
For the Year Ended December 31, 2020

Net Sales 1,500,000.00

Cost of Goods Sold 975,000.00
Gross Margin on Sales 525,000.00
Operating Expenses 225,000.00
Operating Income 300,000.00
Interest Income 50,000.00
Net Income before Taxes 250,000.00
Income Tax (30%) 75,000.00
Net Income 175,000.00