## Based on the information for T. P. Jarmon Company for

Based on the information for T. P. Jarmon Company for the year ended December 31, 2018:

a. How much is the firm’s net working capital and what is the debt ratio?

b. Complete a statement of cash flows for the period. Interpret your results.

c. Compute the changes in the balance sheets from 2017 to 2018. What do you learn about T. P. Jarmon from these computations? How do these numbers relate to the statement of cash flows?

T. P. Jarmon Company Balance Sheet for Dec. 31, 2017 and Dec. 31, 2018

T. P. Jarmon Company Income Statement for the Year Ended Dec. 31, 2018

## Prepare a balance sheet and income statement for Kronlokken Company

Prepare a balance sheet and income statement for Kronlokken Company from the following scrambled list of items.

a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings.

Depreciation expense ……………………………..   \$66,000

Cash ……………………………………………………….    225,000

Long-term debt ………………………………………    334,000

Sales……………………………………………………….    573,000

Accounts payable …………………………………..    102,000

General and administrative expense ………     79,000

Buildings and equipment ……………………….   895,000

Notes payable ……………………………………….      75,000

Accounts receivable ……………………………..     153,000

Interest expense …………………………………..         4,750

Accrued expenses ………………………………..         7,900

Common stock ……………………………………      289,000

Cost of goods sold ……………………………..       297,000

Inventory ……………………………………………        99,300

Taxes ………………………………………………..          50,500

Accumulated depreciation …………………       263,000

Prepaid expenses ……………………………..         14,500

Taxes payable ………………………………….           53,000

Retained earnings ……………………………..       262,900