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please show your work First choice Inc. Income Statement For the year ending Dec

ID: 2626666 • Letter: P

Question

please show your work

First choice Inc.

Income Statement

For the year ending December 31, 2014

Sales (all on credit)

$21,415

Costs of goods sold

16,408

Depreciation expense

1,611

Earnings before interest and taxes

$3,396

Interest expense

1,282

EBT

$2,114

Income taxes

740

Net Income

$1,374

First choice Inc..

Balance Sheet

As of December 31, 2013 and 2014

Increase/

2013

2014

(decrease)

Current Assets:

Cash

$668

$297

($371)

Accounts receivable

1,611

1,527

($84)

Inventory

3,848

2,947

($901)

Total current assets

$6,127

$4,771

($1,356)

Fixed assets (net)

17,489

17,107

($382)

Total assets

$23,616

$21,878

($1,738)

Current liabilities:

Accounts payable

$1,694

$1,532

($162)

Notes payable

2,500

0

($2,500)

Total current liabilities

$4,194

$1,532

($2,662)

Long term debt

9,800

10,650

$850

Stockholder

please show your work

First choice Inc.

Income Statement

For the year ending December 31, 2014

Sales (all on credit)

$21,415

Costs of goods sold

16,408

Depreciation expense

1,611

Earnings before interest and taxes

$3,396

Interest expense

1,282

EBT

$2,114

Income taxes

740

Net Income

$1,374

First choice Inc..

Balance Sheet

As of December 31, 2013 and 2014

Increase/

2013

2014

(decrease)

Current Assets:

Cash

$668

$297

($371)

Accounts receivable

1,611

1,527

($84)

Inventory

3,848

2,947

($901)

Total current assets

$6,127

$4,771

($1,356)

Fixed assets (net)

17,489

17,107

($382)

Total assets

$23,616

$21,878

($1,738)

Current liabilities:

Accounts payable

$1,694

$1,532

($162)

Notes payable

2,500

0

($2,500)

Total current liabilities

$4,194

$1,532

($2,662)

Long term debt

9,800

10,650

$850

Stockholder

Explanation / Answer

a.   What is the investment in net current assets (NCAI) for 2014?

NCAI = Change in current assets