# The balance sheet and income statement for webb enterprises inc. are

Assignment 2 Questions

Problem 6.7 Common Size Financial Statements

The balance sheet and income statement for Webb Enterprises Inc. are found below:

 Balance Sheet 2010 Cash and Marketable Securities \$500 Accounts receivable \$6,000 Inventories \$9,500 Current assets \$16,000 Net property plant & equipment \$17,000 Total \$33,000 Accounts payable \$7,200 Short –term debt \$6,800 Current liabilities \$14,000 Long-term Debt \$7,000 Total liabilities \$21,000 Total owner’s equity \$12,000 Total liabilities and owners’ equity \$31,000

 Income Statement 2010 Revenues \$30,000 Cost of goods sold (\$20,000) Gross profit \$10,000 Operating expenses (\$8,000) Net operating expenses \$2,000 Interest expense (\$900) Earnings before taxes \$1,100 Taxes (\$400) Net Income \$700

A .Prepare a common size balance sheet for Webb Ent

B. Prepare a common size income statement for Webb Ent

C. Use your common size financial statements to respond to your boss’ request that you write up your assessment of the firm’s financial condition. Specifically, write up a brief narrative that responds to the following questions:

a. How much cash does Webb have on hand relative to its total assets?

b. What proportion of Webb’s assets has the firm financed using short term debt?

c. What percent of Webb’s revenues does the firm have left over after paying all of its expenses (including taxes)?

d. Describe the relative importance of Webb’s major expense categories, including cost of goods sold, operating expenses, and interest expenses.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
• 24/7 support
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
• Expert Proofreading
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

### Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Get 20% off your first order

X