FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 35

This lesson will help you refresh your knowledge on the basics of the
balance sheet. Brushing up on these concepts now will help you tackle
your finance coursework later.
General Ledger for XYZ Company. The following is a portion of the general
ledger for XYZ Company as of December 31, 20X1, and the statement of
stockholders’ equity for XYZ Company for the year ended December 31,
20X1. Use this information to answer questions (1) through (5).
1. What is the total amount of current assets to be reported on XYZ
Company’s 12/31/X1 classified balance sheet?
2. What is the total amount of long-term assets to be reported on XYZ
Company’s 12/31/X1 classified balance sheet?
3. What is the total amount of current liabilities to be reported on XYZ
Company’s 12/31/X1 classified balance sheet?
4. What is the ending balance in retained earnings to be reported on XYZ
Company’s 12/31/X1 classified balance sheet?
5. What is the total amount of stockholders’ equity to be reported on XYZ
Company’s 12/31/X1 classified balance sheet?
3. Calculating Interest
This lesson will help fill in the basics on how to calculate interest when
tackling financial problems.
1. What is the amount of interest earned after two years on a $100 deposit
paying 4 percent simple interest annually?
2. What is the amount of compound interest earned after three years on a
$100 deposit paying 8 percent interest annually?
3. A business just took out a loan for $100,000 at 10% interest. If the
business pays the loan off in three months, how much did the business pay
in interest?
4. What is the annual percentage yield (APY) for a deposit paying 5
percent interest with monthly compounding?
4.The Income Statement
This lesson will help you refresh your knowledge on the basics of the
income statement. Brushing up on these concepts now will help you tackle
your finance coursework later.
General Ledger for ABC Company. The following is the general ledger for
ABC Company as of December 31, 20X1. Use this information to answer
questions (1) through (4).
1. What is the amount of gross profit to be reported on ABC Company’s
12/31/X1 income statement?
2. What is the amount of operating income (EBIT) to be reported on ABC
Company’s 12/31/X1 income statement?