(Review of financial statements) Prepare a balance sheet and income statement fo
ID: 2647916 • Letter: #
Question
(Review of financial statements) Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items found below:
70 71
Depreciation expense
$ 66,000
Cash
225,000
Long-term debt
334,000
Sales
573,000
Accounts payable
102,000
General and administrative expense
79,000
Buildings and equipment
895,000
Notes payable
75,000
Accounts receivable
167,500
Interest expense
4,750
Accrued expenses
7,900
Common stock
289,000
Cost of goods sold
297,000
Inventory
99,300
Taxes
50,500
Accumulated depreciation
263,000
Taxes payable
53,000
Retained earnings
262,900
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a. Prepare an income statement for the Warner Company.
b. Prepare a balance sheet for the Warner Company.
c. What can you say about the firm
Depreciation expense
$ 66,000
Cash
225,000
Long-term debt
334,000
Sales
573,000
Accounts payable
102,000
General and administrative expense
79,000
Buildings and equipment
895,000
Notes payable
75,000
Accounts receivable
167,500
Interest expense
4,750
Accrued expenses
7,900
Common stock
289,000
Cost of goods sold
297,000
Inventory
99,300
Taxes
50,500
Accumulated depreciation
263,000
Taxes payable
53,000
Retained earnings
262,900
Explanation / Answer
a. Prepare an income statement for the Warner Company.
b. Prepare a balance sheet for the Warner Company.
c. What can you say about the firm
Warner Company Income statement Sales 573,000 Cost of goods sold 297,000 Gross Profit 276,000 General and administrative expense 79,000 Depreciation expense 66,000 Earning before interest & taxes 131,000 Interest expense 4,750 Earning before taxes 126,250 Taxes 50,500 Net Income 75,750Related Questions
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