Polly’s Pet Products
Unit 1 Written Assignment
Submitted to
Robert Amoah (Instructor)
Course Code: BUS 5110
Course Title: Managerial Accounting
Program: MBA
Session: AY2022-T3
Date of Submission: February 02, 2022
Introduction
This assignment is based on the excel file of (Polly's Pet Products, 2018). Here I am writing the
results of the blank lines from the excel file. Also, I am going to show the process how I calculated the
results and definition of those processes. Another thing I want to mention that, as this assignment is on a
specific case and calculation, so there is no references other than the excel file of (Polly's Pet Products,
2018).
Results and Definition of process
Balance Sheet
Polly's Pet Products
Balance Sheet as of December 31, 2018
ASSETS
CURRENT ASSETS
Cash 31,500
Accounts receivable 50,000
Other assets 25,000
Total current assets 106,500
LONG TERM ASSETS
Fixed Assets 75,000
TOTAL ASSETS 181,500
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 75,000
Accrued expenses 30,000
Income tax payable 5,000
Current portion of notes payable 12,000
Deferred income taxes 1,500
Total current liabilities 123,500
LONG TERM LIABILITIES
Notes payable (long term) 38,000
TOTAL LIABILITIES 161,500
STOCKHOLDERS' EQUITY
Common stock 5,000
Additional paid-in capital 15,000
Retained Earnings 20,000
Total stockholders' equity 20,000
TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY 181,500
Process of my calculation
1. I put a formula (=B40+B41) at B43 to get the value of Retained earnings, then put the value at C45 to
get Total stockholders' equity.
2. At C47 I wrote the formula (=C36+C45) to get the summation of TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY from C36 and C45.
3. From C47, I put the same value at C19 as we know Asset=Equity+Liabilities.
4. By Deducting Fixed Assets $75,000 (cell C17) from Total Assets $181,500 (cell C19), I got the value
of Total current assets $106,500 at C13.
5. At cell C9 I created the formula (=C13-(C10+C11)) to get the value of Cash. It deducted Accounts
receivable and Other assets from Total current assets and I got $31,500 as Cash.
Income Statement
Polly's Pet Products
Income Statement as of December 31, 2018
Revenues 650,000
Operating Costs 445,000
Gross Profit 205,000
General and Administrative Expenses 75,000
Operating Income 130,000
Other Expense 60,000
Income Before Provision for Income Taxes 70,000
Provision for Income Taxes 5,000
Net Income 65,000
Retained Earnings, Beginning Balance 103,500
Net Income 65,000
Retained Earnings, Ending Balance 168,500
Process of my calculation
1. At B8 I wrote formula (=B6-B10) to get Operating Costs, and that is $445,000
2. By subtracting General and Administrative Expenses (B12) from Gross Profit (B10) I got
Operating Income $130,000 at B14
3. I wrote the formula (=B14-B16) at B18 and got the amount of Income Before Provision for Income
Taxes $70,000. Then after subtracting Provision for Income Taxes $5000 from that, I got Net Income
$65,000 at B22
4. Finally in the Income Statement, got the Retained Earnings, Ending Balance $168,500 at B29.
Statement of Cash Flows
Polly's Pet Products
Statement of Cash Flows as of
December 31, 2018
Cash Flows from Operating Activities
Cash received from customers 600,000
Cash paid out to suppliers and employees (400,000)
Interest paid (5,000)
Taxes paid (10,000)
Net cash provided by operating
activities 185,000
Cash Flows from Investing Activities
Purchase of fixed assets (25,000)
Net cash used in investing
activities (25,000)
Cash Flows from Financing Activities
New loans 50,000
Repayments on loans (45,000)
Issuance of common shares of stock 5,000
Net cash provided by financing
activities 10,000
Net change in Cash 170,000
Cash balance, beginning of year 30,000
Cash balance, end of year 200,000
Process of my calculation
1. I wrote a formula (=D10-C6-C8-C9) at C7 and got the value of Cash paid out to suppliers and
employees: $400,000.
2. By writing the formula (=C17+C18+C19) at D20 I got the value of Net cash provided by financing
activities $10,000.
3. Putting this formula (=D10+D14+D20) at D22 I got the amount of Net change in Cash and that is
$170,000.
4. Adding the Net change in Cash (D22) and Cash balance, beginning of year (D24) I got the amount
of Cash balance, end of year $200,000.
Conclusion
The company’s performance is good. We can see the Retained Earnings, Beginning Balance was $103,500,
and the Retained Earnings, Ending Balance is $168,500; that means increased $65,000. Also, the cash
balance of beginning of the year was only $30,000 but the Cash balance at end of year is $200,000. That
means increased $170,000.
References
Polly's Pet Products. (2018, December 31). Retrieved from
https://my.uopeople.edu/pluginfile.php/1551828/mod_workshop/instructauthors/5110U1-Financial.xlsx
