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    Dnw55's Avatar
    Dnw55 Posts: 2, Reputation: 1
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    #1

    Sep 14, 2009, 11:03 PM
    I am trying to figure out the net income, come up with a balance sheet
    Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

    Purchases………………...
    E250,000
    Freight In……………… E8,000

    Sales discounts…………. 4,000
    Purchase returns…….. 7,000

    Inventory Sales…………………. 400,000

    December 31, 20X1….. 20,000
    Purchase discounts…. 3,000

    December 31, 20X2….. 30,000
    Sales returns…………. 8,000

    Administrative Expenses 20,000




    Balance Sheet - December 31, 20X1

    Cash 10,000
    Inventory 20,000
    Owner's Equity 30,000

    Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

    Net sales revenue
    Cost of goods sold
    Gross profit
    Net income
    Balance sheet, December 31, 20X2
    Statement of Owner's Equity, December 31, 20X2
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 15, 2009, 02:17 PM
    December 31, 20X1….. 20,000
    Purchase discounts…. 3,000

    December 31, 20X2….. 30,000
    Sales returns…………. 8,000
    What is the 20,000 and 30,000? The information is confusing. (I don't know if you tried to do columns but they don't stay when you submit it.) There's also a lot of jumping back and forth between 2001 and 2002.

    Administrative Expenses 20,000
    What year?

    Net sales revenue
    That's pretty easy -- net sales is just the sales less any discounts and returns.

    Cost of goods sold
    I don't see from this information how this can be done.

    Balance sheet, December 31, 20X2
    Statement of Owner's Equity, December 31, 20X2
    I also don't see any way to get this. There may be more information somewhere that is not presented here.
    47flower's Avatar
    47flower Posts: 15, Reputation: 1
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    #3

    Nov 2, 2009, 10:16 AM
    I need a balance sheet
    decisionsupport's Avatar
    decisionsupport Posts: 31, Reputation: 1
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    #4

    Nov 2, 2009, 11:44 PM
    Quote Originally Posted by 47flower View Post
    I need a balance sheet
    Hi 47 Flower,

    See the attached spreadsheet for all the computations.




    Vital Knowledge
    Attached Files
  1. File Type: xls LeFluers-FinStmt.xls (23.0 KB, 446 views)
  2. 47flower's Avatar
    47flower Posts: 15, Reputation: 1
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    #5

    Nov 4, 2009, 09:39 AM
    What is the balance sheet for Les Fleurs Boutique and show what goes on the balance sheet.
    47flower's Avatar
    47flower Posts: 15, Reputation: 1
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    #6

    Nov 4, 2009, 09:46 AM
    How does the balance sheet look for Les Fleurs Boutique and what exactly to you put on the balance sheet? We have purchases, Sales discounts, inventory, administrative expenses, Freight In, Purchase returns, Sales, Purchase discounts, and sales returns
    decisionsupport's Avatar
    decisionsupport Posts: 31, Reputation: 1
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    #7

    Nov 4, 2009, 12:00 PM
    Quote Originally Posted by 47flower View Post
    How does the balance sheet look for Les Fleurs Boutique and what exactly to you put on the balance sheet? We have purchases, Sales discounts, inventory, administrative expenses, Freight In, Purchase returns, Sales, Purchase discounts, and sales returns
    Did you miss the attachment I posted?

    You don't include sales discounts, administrative expenses, freight in, purchase returns, sales, purchase dicounts and sales returns on the balance sheet. These are income statement line items. Is that what you were looking for? If it is, just take the components up to net income in my attachment and combine them.

    Balance sheet includes Assets (Ex: Cash, Marketable securities, Accounts Receivable, Inventory, Equipment, Patents, Goodwill, etc.), Liabilities (Accounts Payable, Notes Payable, etc.), Equity (Common Stock, Additional Paid in Capital, Retained Earnings etc.)

    Hope this helps... if it doesn't, it might help for you to go back and re-read a few of those chapters from your accounting text.
    decisionsupport's Avatar
    decisionsupport Posts: 31, Reputation: 1
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    #8

    Jun 25, 2012, 02:50 PM
    I've moved my blog if anyone is interested in following up... eFinancialAnalysis

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