ASSIGNMENT 1 – FINANCIAL STATEMENT ANALYSIS
The balance sheet and income statement shown below are for Koski Inc. Note that the firm
has no amortization charges, it does not lease any assets, none of its debt must be retired
during the next 5 years, and the notes payable will be rolled over.
Balance Sheet (Millions of $)
Assets 2012
Cash and securities $ 2,500
Accounts receivable 11,500
Inventories 16,000
Total current assets $30,000
Net plant and equipment $20,000
Total assets $50,000
Liabilities and Equity
Accounts payable $ 9,500
Notes payable 7,000
Accruals 5,500
Total current liabilities $22,000
Long-term bonds $15,000
Total debt $37,000
Common stock $ 2,000
Retained earnings 11,000
