Based on the following information can you confirm the Income Statement and Bala
ID: 2405825 • Letter: B
Question
Based on the following information can you confirm the Income Statement and Balance Sheet were done correctly? Both have been completed after the information. If there is an error please list why there is an error, they appear correct to me. Thank you, and please take your time....
Income Statement Data for 20XX:
Units produced and sold = 420
Sales ($80 per unit selling price) = $33600
Cost of goods sold ($30 per unit, all variable costs) = $12600
Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves)
Advertising fees =$2000
Bank fees = $150
Phone/internet = $1200
Shipping ($3 per unit) = $1260
Utilities = $900
Office supplies = $800
Interest expense on note payable = $350
Depreciation expense (straight line) = $800
Income tax rate = 26 %
Other Financial Data for 20XX:
Proceeds from sale of equipment = $3000. The equipment originally cost $1000 and had accumulated depreciation of $200.
Purchase of equipment = $1600 (The machine is purchased on the last day of 20XX so no depreciation expense is recorded.)
Repayment of note payable = $5000
Consider any data relevant from the income statement.
Balance Sheet Data for Beginning of 20XX:
Cash and cash equivalents = $10000
Accounts receivable = $0 (Cash is received at time of sale)
Raw materials inventory = $10500
Equipment = $5000 (This includes the $1000 cost of the equipment sold in 20XX).
Accumulated depreciation = $1,000 (This includes the accumulated depreciation of 200 for the equipment sold in 20XX.
Accounts payable = $0 (Cash is paid at the time of purchase.)
Note payable = $5000 (This is the note payable which is repaid in 20XX)
Common stock = $15000
Retained earnings = $4500
Income Statement Data for 20XX:
Units produced and sold = 420
Sales ($80 per unit selling price) = $33600
Cost of goods sold ($30 per unit, all variable costs) = $12600
Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves)
Advertising fees =$2000
Bank fees = $150
Phone/internet = $1200
Shipping ($3 per unit) = $1260
Utilities = $900
Office supplies = $800
Interest expense on note payable = $350
Depreciation expense (straight line) = $800
Income tax rate = 26 %
Other Financial Data for 20XX:
Proceeds from sale of equipment = $3000. The equipment originally cost $1000 and had accumulated depreciation of $200.
Purchase of equipment = $1600 (The machine is purchased on the last day of 20XX so no depreciation expense is recorded.)
Repayment of note payable = $5000
Consider any data relevant from the income statement.
Balance Sheet Data for Beginning of 20XX:
Cash and cash equivalents = $10000
Accounts receivable = $0 (Cash is received at time of sale)
Raw materials inventory = $10500
Equipment = $5000 (This includes the $1000 cost of the equipment sold in 20XX).
Accumulated depreciation = $1,000 (This includes the accumulated depreciation of 200 for the equipment sold in 20XX.
Accounts payable = $0 (Cash is paid at the time of purchase.)
Note payable = $5000 (This is the note payable which is repaid in 20XX)
Common stock = $15000
Retained earnings = $4500
Income Statement
for the period 1 January 20XX to 31 December 20XX
Revenue
Sales
33,600
Cost of Goods Sold
(12,600)
Gross Profit
21,000
Operating Expenses
Advertising Fees
2,000
Bank Fees
150
Phone/Internet
1,200
Shipping
1,260
Utilities
900
Office Supplies
800
Depreciation Expense
800
Total Operating Expenses
7,110
Operating Profit (EBIT)
13,890
Other Income and (expenses)
Interest expenses
(350)
Gain on sale of equipment
2,200
Profit Before Taxes (EBT)
15,740
Income Tax
4,092
Net Income
11,648
Balance Sheet
For Year Ending 20XX
Assets
Current Assets
Cash and Cash equivalents
16,648
Accounts receivables
-
Raw materials inventory
10,500
Total current assets
27,148
Non-current Assets
Equipment
5,600
Less: accum. depreciation
(800)
4,800
Total assets
31,948
Liabilities & Stockholders'equity
Current Liabilities
Accounts payable
-
Total Current Liabilities
-
Note payable
-
Total Liabilities
-
Stockholders' equity
Common Stock
15,000
Retained earnings
16,948
Total stockholders' equity
31,948
Total liabilities & stockholders' equity
31,948
Income Statement
for the period 1 January 20XX to 31 December 20XX
Revenue
Sales
33,600
Cost of Goods Sold
(12,600)
Gross Profit
21,000
Operating Expenses
Advertising Fees
2,000
Bank Fees
150
Phone/Internet
1,200
Shipping
1,260
Utilities
900
Office Supplies
800
Depreciation Expense
800
Total Operating Expenses
7,110
Operating Profit (EBIT)
13,890
Other Income and (expenses)
Interest expenses
(350)
Gain on sale of equipment
2,200
Profit Before Taxes (EBT)
15,740
Income Tax
4,092
Net Income
11,648
Explanation / Answer
The answer is absolutelycorrect.Great Work done.
Income Statement for the period 1 January 20XX to 31 December 20XX Revenue Sales 33,600 Cost of Goods Sold -12,600 Gross Profit 21,000 Operating Expenses Advertising Fees 2,000 Bank Fees 150 Phone/Internet 1,200 Shipping 1,260 Utilities 900 Office Supplies 800 Depreciation Expense 800 Total Operating Expenses 7,110 Operating Profit (EBIT) 13,890 Other Income and (expenses) Interest expenses -350 Gain on sale of equipment 2,200 Profit Before Taxes (EBT) 15,740 Income Tax 4,092 Net Income 11,648 Balance Sheet For Year Ending 20XX Assets Current Assets Cash and Cash equivalents 16,648 Accounts receivables - Raw materials inventory 10,500 Total current assets 27,148 Non-current Assets Equipment 5,600 Less: accum. depreciation (800) 4,800 Total assets 31,948 Liabilities & Stockholders'equity Current Liabilities Accounts payable - Total Current Liabilities - Note payable - Total Liabilities - Stockholders' equity Common Stock 15,000 Retained earnings 16,948 Total stockholders' equity 31,948 Total liabilities & stockholders' equity 31,948Related Questions
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