Using the nancial statement information from below, create balance sheets and (t
ID: 2579945 • Letter: U
Question
Using the nancial statement information from below, create balance sheets and (traditional gross-margin format) income statements for the given years. • From those nancial statements determine the following for the most current year:
Year ended Dec. 31, 2016
Cost of Goods Sold 400,000
Cash 35,000
Selling & Administrative Expenses 160,000
Salaries Payable 40,000
Long-term liabilities 270,000
Finished Goods Inventory 55,000
Accounts Payable 20,000
Interest Expense 8,000
Income Tax Expense 30%
Sales Revenue (all on account) 700,000
Plant, Property, and Equipment, net 300,000
Accounts Receivable 60,000
Common Stock ($1 par) 120,000
Year ended Dec. 31, 2015
Cash 30,000
Accounts Receivable 50,000
Finished Goods Inventory 60,000
Plant, Property, and Equipment, net 320,000
Accounts Payable 20,000
Salaries Payable 20,000
Long-term liabilities 300,000
Common Stock ($1 par) 120,000
Explanation / Answer
Income Statement For the Year Ended December 31, 2016 Sales revenue 700000 Cost of goods sold 400000 Gross margin 300000 Selling & Administrative expenses 160000 Operating income 140000 Interest expense 8000 Income before income taxes 132000 Income tax expense 39600 Net income 92400 Balance Sheet At December 31 2016 2015 Assets Cash 35000 30000 Accounts receivable 60000 50000 Finished goods inventory 55000 60000 Plant, Property, and Equipment 300000 320000 Total assets 450000 460000 Liabilities and Stockholders' Equity Accounts payable 20000 20000 Salaries payable 40000 20000 Long-term liabilities 270000 300000 Common stock 120000 120000 Total liabilities and stockholders' equity 450000 460000
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