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The MGT500. Business Basics assignment entails Globus Enterprises Year End Balances. So, using the data in the table above, create an income statement for the year being examined.

## MGT500. Business Basics : Globus Enterprises Year End Balances

MGT500. Business Basics

Assignment 2 GLOBUS ENTERPRISES YEAR END BALANCES

Globus Enterprises Year End Balances

Firstly, Owner’s Equity \$112,350

Then, Revenue \$263,200

Again, Wages expense \$121,800

Rent expense \$65,100

Supplies expense \$50,400

Miscellaneous expenses \$5,250

Cash \$81,200

Accounts receivable \$51,800

Supplies \$9,100

Prepaid insurance \$8,400

Land (fixed asset) \$29,400

Equipment (fixed asset) \$25,900

Accounts payable \$20,650

Notes payable \$43,050

Mortgage (long term) \$29,750

#### MGT500. Business Basics : Globus Enterprises Year End Balances

Assignment

Firstly, Using the data in the table above, create a balance sheet for Globus’s operations. As of yearend (December 31, 200X)

Secondly,using the data in the table above, create an income statement for the year being examined.

Thirdly,  Analyze the financial statements using the following analytical tools:

a. Current ratio,. Then,  (What does this ratio tell us about Globus?)

b. Net working capital, So,  (What does net working capital tell us about Globus?)

Note: Net working capital is the difference between current assets and current liabilities.

c. Debt to equity ratio (What does this ratio tell us about Globus?). So,  Note: To compute owners’ equity from the data supplied here, remember the fundamental accounting equation:

Assets = Liabilities + Owners’ equity

d. Leverage ratio. So,  (What does this ratio tell us about Globus?)

e. Return on equity. Again,  (What does this ratio tell us about Globus?)

### Detailed Instructions

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