You are the head of the Huffman Trucking accounting department. The chief executive officer (CEO) has asked you to prepare a financial report addressing long-term financial needs.
Resource: Virtual Organizations
Examine financial information for Huffman Trucking, within the Virtual Organization web link located on the course materials page. Read the New Strategic Directions Memo. Calculate external funds needed (EFN) to create the pro forma balance sheet and income statement for 2012. Calculate the following year-end ratios for the pro forma statements:
Profit as a percentage of sales
Current ratio
Asset ratio (Total Assets/ Total Liabilities)
Prepare a 700- to 1,050-word financial report for the CEO containing the EFN calculation, the ratio calculations, and an explanation of how you reached the calculations. Explain which income statement and balance sheet items you assumed were variable instead of fixed.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Balance Sheet
(Unaudited)
December 31st
2011 2010
(In Thousands)
Assets
Current Assets
Cash & Cash Equivalents $89,664 $58,003
Accounts Receivable 51,869 81,557
Prepaid Expenses & Supplies 6,267 5,529
Total Current Assets $147,800 $145,089
Carrier Operating Property (at cost) $85,306 $81,461
Less: Allowance for Depreciation (69,536) (67,119)
Net Carrier Operating Property $15,770 $14,342
Assets of Discontinued Operations 7,516 8,739
Goodwill (net) 49,852 49,852
Other Assets 46,327 37,306
Total Assets $267,265 $255,328
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable $40,843 $45,381
Salaries & Wages 37,299 33,014
Current Portion of Long-Term Debt 1,752 1,343
Freight & Casualty Claims Payable 10,389 9,697
Total Current Liabilities $90,283 $89,435
Long-Term Liabilities
Accrued Pension & Post-Retirement Health Care $64,058 $58,672
Long-Term Debt 7,307 6,562
Total Long-Term Liabilities $71,365 $65,234
Shareholders' Equity
Common Stock ($1.00 par value Authorized: 20,000,000 shares) $3.882 $3.882
Treasury Shares (1.952) (1.952)
Retained Earnings 105,615 100,657
Total Shareholders' Equity $105,617 $100,659
Total Liabilities and Shareholders' Equity $267,265 $255,328
Resource: Virtual Organizations
Examine financial information for Huffman Trucking, within the Virtual Organization web link located on the course materials page. Read the New Strategic Directions Memo. Calculate external funds needed (EFN) to create the pro forma balance sheet and income statement for 2012. Calculate the following year-end ratios for the pro forma statements:
Profit as a percentage of sales
Current ratio
Asset ratio (Total Assets/ Total Liabilities)
Prepare a 700- to 1,050-word financial report for the CEO containing the EFN calculation, the ratio calculations, and an explanation of how you reached the calculations. Explain which income statement and balance sheet items you assumed were variable instead of fixed.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Balance Sheet
(Unaudited)
December 31st
2011 2010
(In Thousands)
Assets
Current Assets
Cash & Cash Equivalents $89,664 $58,003
Accounts Receivable 51,869 81,557
Prepaid Expenses & Supplies 6,267 5,529
Total Current Assets $147,800 $145,089
Carrier Operating Property (at cost) $85,306 $81,461
Less: Allowance for Depreciation (69,536) (67,119)
Net Carrier Operating Property $15,770 $14,342
Assets of Discontinued Operations 7,516 8,739
Goodwill (net) 49,852 49,852
Other Assets 46,327 37,306
Total Assets $267,265 $255,328
Liabilities and Shareholders' Equity
Current Liabilities
Accounts Payable $40,843 $45,381
Salaries & Wages 37,299 33,014
Current Portion of Long-Term Debt 1,752 1,343
Freight & Casualty Claims Payable 10,389 9,697
Total Current Liabilities $90,283 $89,435
Long-Term Liabilities
Accrued Pension & Post-Retirement Health Care $64,058 $58,672
Long-Term Debt 7,307 6,562
Total Long-Term Liabilities $71,365 $65,234
Shareholders' Equity
Common Stock ($1.00 par value Authorized: 20,000,000 shares) $3.882 $3.882
Treasury Shares (1.952) (1.952)
Retained Earnings 105,615 100,657
Total Shareholders' Equity $105,617 $100,659
Total Liabilities and Shareholders' Equity $267,265 $255,328
