Question 1. Presented below is a partially completed balance sheet for Baldin, Inc., at December 31, 2014, together with comparative data for the year ended December 31, 2013. From the Statement of Cash Flows for the year ended December 31, 2014, you determine that:
- Net income for the year ended December 31, 2014, was $106,000.
- Dividends paid during the year ended December 31, 2014, were $42,000.
- Accounts receivable increased $14,000 during the year ended December 31, 2014.
- The cost of new buildings acquired during 2014, was $85,000.
- No buildings were disposed of during 2014.
- The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2014, is $210,000.
- Revenue was 4,500,000 for the year
- Labor - Direct was 1,2500,000
- Utilities used in manufacturing - 250,000
- Supervisor labor used in manufacturing - 90,000
- Selling Expenses - 135,000
- Office and Officer Wages 395,000
- Other company general expenses - 789,450
- Materials - 1,000,000
- Company Utilities - 94,000
- Interest Expense - 390,550
Required:
(a.) Complete an income statement for the year ended December 31, 2014
(b.) Prepare a balance sheet as of December 31, 2014
Question #2
Please review the financial statements of SolarCity Corporation (SCTY) and take time to review the two major financials. Using the ratio's and financial information that you have learned in class, please answer the following questions:
1. Please give 4 ratio's of your choice and explain 3 years of historical calculations of the ratio's and the pattern that they form
2. If you were hired as the CEO of the company, what areas would you focus on to change the financial condition of the company? Please give specific ideas in terms of the subcategories of the financials that reinforces your ideas
3. There are three areas of capital growth for a company we went through in class, please explain all three and apply these to this company in terms of how you would change the financial health and operational efficiency to foster a viable profitable and financially health company