Question

Case: Cloutier Inc.

Cloutier Inc., set up as a privately held corporation, operating as a ready to wear garments retailer, of which

100% of the Common Shares are owned by Bryan Cloutier. You were hired to account for transactions for the

month of June 2023, complete month end processing, prepare the financial statements and perform a financial

ratio analysis as of the end of that month. They use perpetual inventory system and use the weigted average

method to determine value for the inventory. Its balance sheet as at May 31, 2023, is presented below.

Assets

Cash

Cloutier Inc.

Classified Balance Sheet

As at May 31, 2023

Accounts Receivable

Merchandise Inventory

Prepaid Insurance

Total Current Assets

Long-Term Assets

Equipment

Accumulated Depreciation

Total Assets

Liabilities

Current Liabilities

Accounts Payable

Unearned Revenue

Salaries Payable

Current Portion of Bank Loan

Total Current Liabilities

Non-Current Liabilities

Non-Current Portion of Bank Loan

Total Liabilities

Shareholders' Equity

Common Shares

Retained Earnings

Total Shareholders' Equity

Total Liabilities & Equity

Notes Relating to Balances:

Customers and balances

Lance Inc

Knot Inc.

Mcdo Inc.

Giffo Inc.

Promod Inc.

Total

$72,560

25,480

38,000

7,200

166,000

-81,000

$30,790

$14,500

$8,250

19,980

$6,250

$8,610

$5,570

$3,050

$2,000

143,240

85,000

$228,240

$73,520

29.970

$103,490

81,600

43,150

124.750

$228,240

Suppliers and Balances

Zalora Co

Mango Corp.

Levis Co.

Total

$25,480

The bank loan has an annual interest rate of 9% and has monthly principal payment of $1,665.

$16,730

$7,820

$6.240

$30,790

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