Need help in answering 5 of 7 questions. 3. The following is a partial listing of accounts for Euisara, Inc., for the year ended December 31, 2009. Required: Prepare a classified balance sheet in good format for December 31, 2009. Finished Goods $ 9,718 Current Maturities of Long-Term Debt 1,257 Accumulated Depreciation 9,980 Accounts Receivable 24,190 Sales Revenue 127,260 Treasury Stock 251 Prepaid Expenses 2,199 Deferred Taxes (long-term liability) 8,506 Interest Expense 2,410 Allowance for Doubtful Accounts 915 Retained Earnings 18,951 Raw Materials 9,576 Accounts Payable 19,021 Cash and Cash Equivalents 8,527 Sales Salaries Expense 872 Cost of Goods Sold 82,471 Investment in Unconsolidated Subsidiaries 3,559 Income Taxes Payable 8,356 Work In Process 1,984 Additional Paid-In Capital 9,614 Equipment 41,905 Long-Term Debt 15,258 Rent Income 2,468 Common Stock 3,895 Notes Payable (short-term) 6,156 Income Tax Expense 2,461 4. Information related to Batavia Furniture Company for the year ended December 31, 2009, follows. Cost of Goods Sold $ 70,000 Dividends Declared 5,000 Flood Loss (pre-tax) 12,000 General Expense 8,000 Other Income 9,000 Other Expense 11,000 Retained Earnings, January 1, 2009 116,000 Sales 131,000 Selling Expense 7,000 Required: Prepare in good form a multiple-step income statement for the year 2009. Assume a 50% tax rate and that 5,000 shares of common stock were outstanding during the year. 7. Each of the following would generally be thought of as a favorable indicator of the firm’s financial position: a. A current ratio well above 2.0, which is substantially higher than that for other firms in the industry. b. Collection period significantly lower than for several recent periods. c. Rapidly rising merchandise inventory turnover. Required: In each case, give an example of circumstances underlying the ratio that might represent an unfavorable development. 9. How will switching from fifo to lifo for inventory valuation affect financial analysis of liquidity and profitability? Cite two ratios that will be affected and indicate how they will change. (Assume an inflationary condition). 10. Bill’s Produce does 60 percent of its business during June, July, and August. For Year Ended For Year Ended December 31, 2006 July 31, 2006 Net Sales $700,000 $690,000 Receivables, less allowance for doubtful accounts: Beginning of period $ 45,000 $ 80,000 (allowance, January 1, $2,000; August 1, $3,000) End of period (allowance, December 31, $ 50,000 $ 85,000 $3,000; July 31, $3,500) Required: a. Compute the days’ sales in receivables for July 31, 2006, and December 31, 2006, based on the data above. b. Compute the accounts receivable turnover for the period ended July 31, 2006, and December 31, 2006. c. Comment on the results from (a) and (b). 11. Alpha Company would like to estimate how long it will take to realize cash from its ending inventory. For this purpose the following data are submitted: Accounts Receivable, less allowance for doubtful accounts of $40,000 $660,000 Ending Inventory $750,000 Net Sales $5,650,000 Cost of Goods Sold $4,250,000 Days’ Sales in Inventory = Ending Inventory Cost of Goods Sold / 365 Days’ Sales in Receivables = Gross Receivables Net Sales / 365 Required: Estimate how long it will take to realize cash from the ending inventory. 12. The following are the inventory records of the Garret Company: Units Cost Tota l January 1 40 $12 $480 Purchases: February 10 20 13 260 July 15 40 14 560 November 1 50 15 750 December 10 30 16 480 Available 180 $2,530 Ending inventory consists of 30 units from the July purchase. Note: The company uses a periodic inventory system. Required: Calculate ending inventory and cost of sales, using: (a) FIFO, (b) LIFO, (c) average, and (d) specific identification.