Name _____________________________________
ACCT 223 – Fall 2022
Final Exam – Comprehensive
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5
Using the below account balances for Charlotte Company, and in this order:
Prepare an Income Statement in proper format for the Year Ended 12/31/22.
Calculate the ending retained earnings balance as of 12/31/22.
Prepare the Balance Sheet in proper format as of 12/31/22.
Calculate the financial ratios listed at the bottom of this page – show your work.
Answer the questions listed at the bottom of this page.
(10 pts)
(5 pts)
(20 pts)
(2 pts ea)
(2 pts ea)
12/31/2022
Accounts Payable
Accounts Receivable
Additional Paid-in Capital
Automobiles
Vehicles
Buildings
Cash
Coal
Cost of Goods Sold (COGS)
Common Stock $1 par, 400,000 shs authorized, 30,000 shs issued, 25,000 shs
outstanding
Computer Software
Conferences & Travel Expense
Depreciation, Depletion & Amortization Expense
Dividends Paid
Gain on Sale of Assets
General & Administrative Expense
Goodwill
Income Tax Expense
Insurance Expense
Interest Expense
Interest Income
Interest Payable
Land
Loss on Sale of Assets
Accumulated Amortization
Accumulated Depletion
Accumulated Depreciation
Long-Term Bonds Payable
Long-Term Note Payable
Inventory
Net Sales Revenue
Patents
Preferred Stock $1 par, 15,000 shs outstanding
Prepaid Insurance
Equipment
Payroll Taxes Expense
Retained Earnings (1/1/22 balance = $90,000)
Selling & Advertising Expense
Short-Term Investments
Short-term Note Payable
$
$
$
$
$
$
$
$
$
50,000
60,000
10,000
50,000
40,000
300,000
150,000
20,000
600,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
30,000
40,000
10,000
15,000
40,000
5,000
100,000
120,000
30,000
60,000
7,000
2,000
20,000
130,000
2,000
(11,000)
(3,000)
(110,000)
195,000
225,000
50,000
1,399,000
35,000
15,000
15,000
125,000
45,000
?
12,000
25,000
65,000
$
$
$
Timber
Trademarks
Treasury Stock 5,000 shs
Utilities Expense
Wages Expense
Wages Payable
$
$
$
$
$
$
8,000
6,000
(5,000)
20,000
130,000
20,000
Financial Ratios (show your work) – See Ratios sheet in Canvas for formulas:
A Earnings per Share (EPS); (Com. Stock outstanding 1/1/22 = 30,000 shs)
B Return on Investment (ROI); (Total Assets 1/1/22 = $900,000)
C Return on Equity (ROE); (Total Equity 1/1/22 = $400,000)
D Working Capital
E Current Ratio
F Debt to Equity Ratio
G Inventory Turnover (Inventory Bal on 1/1/22 = $40,000)
H Accounts Receivable Turnover (Acct Rec Bal on 1/1/22 = $66,000)
I Price/Earnings Ratio (market price per share = $50)
J Gross Profit Ratio
Fill in the Blank:
K What are the 3 types of inventory accounts a manufacturing company might show on its balance sheet:
________________________________________________________________________________
L When a bond’s stated rate is lower than the market rate, the bond is issued at a:
________________________________________________________________________________
M Name the 3 sections of the Cash Flow Statement:
________________________________________________________________________________
N Decreases in assets, increases in liabilities, & increases in equity all have what effect on cash:
________________________________________________________________________________
O Which cost allocation method is used with Natural Resources?
________________________________________________________________________________
P Which inventory costing method (FIFO or LIFO) results in lower cost of goods sold?
________________________________________________________________________________
Q The number of shares of stock issued less the number of shares of treasury stock is called:
________________________________________________________________________________
R The balance sheet equation (accounting formula) is represented by:
________________________________________________________________________________
S Money owed to an organization for products or services it sold to its customers but has not yet received cash is called:
________________________________________________________________________________
T The type of stock that has liquidation preference but no voting rights is called:
________________________________________________________________________________

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