Ralph Corbett, M.S.

Web DesignerSoftware Engineer





The Balance Sheet
is out of balance.

Find harmony in life, and maintain its balance.



Welcome to my LIVE accounting financial statements for




ACME Rat Chow Company.

Analyze financial statements and ratios with these live, interactive statements.
Make changes to the text-boxes, and other accounts will be affected.
This is still beta, so there might be bugs. (Rats?)

Fun stuff: accounts in the negative will require a fire extinguisher.
The wrong burning accounts will throw the balance sheet out of balance.

There are "customers" in the income statement.
Every 7 seconds, 1-3 "customers" will leave add: purchases, and enter the income statement.
.

Now with ratios!
"Alas, poor Yorick! I knew him, Ratio, a fellow of infinite jest, of most excellent fancy."
~ Hamlet, CPA






Acme Rat Chow Company
Income Statement
For the Year Ended December 31, 2016


Revenue

Sales

Less: Sales discounts

Less: Sales returns
and allowances

Total less sales

Net sales

Cost of Goods Sold

Beginning inventory

Add: Purchases

Add: Freight-in

Total add purchases

Less: Purchase discounts

Less: Purchase returns
and allowances

Total less purchases

Net purchases

Cost of goods availiable for sale

Less: End inventory

Cost of goods sold

Gross profit

$


Expenses

Salaries

Interest

Depreciation

Bad Debt Expense

Total expenses

Income before taxes

Income tax expense
Rounds to nearest number

%

Real $   -->
.08

Net income

$


The CEO issued too many property dividends.
Add to purchases or lower the dividends to cover his mistake.

Acme Rat Chow Company
Statement of Retained Earnings
For the Year Ended December 31, 2016

Retained earnings, January 1

Add: Net income

Retained earnings after net income

Less: Preferred stock dividends

?

Common stock dividends

Property dividends

?

Retained earnings, January 31

$

You might wan't to check purchases!


Preferred stock is paid more
than common stock.

Example of property dividend
Retained Earnings   1
Purchases 1

Accounts payable   1
Cash 1
(To record the payment of property dividend.)
For more details see "How to Use," and Transactions - Oct 16.


Acme Rat Chow Company
Balance Sheet
December 31, 2016

Current Assets

Cash

Accounts receivable

Less: Allowance for
Doubtful Accounts

Net accounts receivable

Inventories

Prepaid expenses

Supplies

Total current assets

Non-Current Assets

Equipment

Less: Accumulated depreciation

Net equipment

Intangible assets

Patent

Trademark

Total intangible assets

Total non-current assets

Total assets

$

Liabilities and Stockholders' Equity

Current libilities

Accounts payable

Salaries payable

Interest payable

Income tax payable

Total current liabilities

Long-term liabilities

Note payable

Total long-term liabilities

Total liabilities

Stockholders' equity

Perferred stock, $10 share par,

99 shares authorized,
10 shares issued
89 shares availiable

_

 

Common stock, $1 share no par,

99 shares authorized,
60 shares issued
39 shares availiable

_

 

Retained earnings

Less: Treasury stock,

60 shares issued,
10 common shares at cost
50 shares outstanding

_

 

Total stockholders' equity

Total liabilities and
stockholders' equity

$

You bought counterfeit stock
Hope the boss doesn't find out

Real-Time Accounting
Start with income statement, make changes, and those changes will be reflected across the other financial statements. There are no safeties here. So a person could purchase 20 items, return 50, and throw the other statements out of whack.

This will all lead to ratio analysis later on.
The numbers are small and easy to follow. To maintain this, only 2 numbers are allowed in each text-box. While in actuality, the ACME Rat Chow Company is one of the Fortune 500 companies, maintaining billions in yearly sales, and employing almost one million employees worldwide.


Buy equipment and supplies with cash.
Need cash? Issue stock, sign a promissory note, or start Beginning Retained Earnings with a number. Adding to Beginning Retained Earnings will add that amount to Cash. In reality, Beginning Retained Earnings would be many things - cash, land, equipment...

Issuing stock is limited to what the state charter has allowed to issue. As more stock is left outstanding, that number will be changed in the account description.

Sales payment is sent to Accounts Receivable

Income statement account Ending inventory is reflected in balance sheet account Inventories

Purchase and freight-in payment is sent to Accounts Payable

Dividends declared and paid. Be generous and declare more, which lowers cash.

If preferred stock is equal or less than common stock, a notice will appear.

Property stock is ACME Rat Chow's gourmet variety pack. Normally, preferred stock is higher than common stock, however, the preferred stockholders are in no hurry to file a complaint with this.

Treasury stock will be taken out of circulation and be held for later use. Be carefull and try not to purchase counterfeit stock, ie, issued 60 shares and bought back 90 shares. This means 30 shares are counterfeit.

Fun Stuff
If an account is in the negative, get out the fire extinguisher.

Beware of "customers" trying to get at the inventory.

Every 7 seconds, 1-3 “customers” will leave add: purchases, and enter the income statement.

These same customers will attach themselves to the scrollbar, and hang out at ending inventory, and bad debt expense.

If balance sheet is un-balances, meditation kitty will appear giving advice.

Ralph Corbett, CEO
Acme Rat Chow Company
"The pinnacle of rat chow"

Oct   1 Cash 59
  Common Stock 60
Oct   2 Cash 10
Note Payable 10
Oct   3 Prepaid rent   9
Cash 9
Oct   4 Trademark   1
Cash 1
Oct   5 Patent 10
Cash 10
Oct   6 Supplies   3
Cash 3
Oct  7 Office Equipment   5
Cash 5
Oct   8 Accumlated Depreation   1
Deperation Expense 1
Oct   9 Inventory  10
Accounts Payable 10
Oct 10 Inventory 30
Freight-In 5
Accounts Payable 35
Oct 11 Accounts Payable 10
Purchase Discounts 5
Purchase Returns & Allowances 5
Oct 12 Accounts Receivable 30
Sales Discount   5
Sales Returns & Allowances   5
Sales 40
Oct 13 COGS 30
Inventory 30
Oct 14 Retained Earnigns 2
Cash 2
Payment preferred stock
Oct 15 Retained Earnigns 1
Cash 1
Payment common stock
Oct 16 Retained Earnings 0
Purchases 0
Oct 16 Accounts Payable 0
Cash 0
October 16 Payment of property dividend with Rat Chow Variety Pack, lowering cash, A/P, and purchase. No transaction yet. This is what happens when property dividends are paid.
Oct 17 Bad Debt Expense 1
Allowance for Doubtful Accounts 1
Oct 18 Treasury stock 10
Cash 10


 

Ratios

Liquidity

Working capital

Current Assets -
Current Liabilities




0

-

0


0

Current ratio

Current Assets

Current Liabilities

0

0


0

Quick ratio
Cash + Market Securities + A/R

Current Liabilities


0

+

0

+

0

0


0

Inventory turnover

Cost of goods sold

Average inventory


0

0


0


Days in inventory

365 days

Inventory turnover


365

0

0

Receivables turnover

Net credit sales

Avg. net receivables


0

0


0

Avg. collection period

365 days

Receivables turnove


365

0


0


Profitability

Earnings per share

Net income - Preferred stock dividends

Average common shares outstanding


0

-

0

0


0

Price-earnings ratio

Stock price per share

Earnings per share


1

0


0

Gross profit ratio

Gross profit

Net sales


0

0


0

Profit margin ratio

Net income

Net sales


0

0


0


Return on assets ratio

Net income

Average total assets


0

0


0

Assets turnover ratio

Net sales

Average total assets


0

0


0

Payout ratio

Cash dividends declared on com stock

Net income


0

0


0

Return on com. S/E

Net income - Preferred stock dividends

Average common stockholders' equity


0

-

0

0


0


Solvency

Debt to total assets

Total liabilities

Total assets


0

0


0

Times interest earned

Net income +
Interest expense +
Tax expense

Interest expense


0

+

0

+

0

0


0