Advertising expenditures 78,000 Cost of goods sold 2,433,000 Depreciation 78,000
ID: 2783661 • Letter: A
Question
Advertising expenditures 78,000
Cost of goods sold 2,433,000
Depreciation 78,000
Gross sales 3,210,000
Interest expenses 64,000
Lease payment 52,000
Management salary 240,000
Material purchase 2,425,000
R&D expenditures 35,000
Repair and maintenance costs 22,000
Returns and allowances 48,000
Taxes 51,000
Treasury stock 20,000
[11 points] From the following accounts, prepare a balance sheet for the ZEBRA CORPORATION for the year ending December 31, 2016, solve for the amount of cash, and clearly indicate the value of each major sub-category, such as “current assets,” “Equity,” etc.: [Hint: Critically think about each item that should be included in the balance sheet and where it should appear on it.]
Gross fixed assets 284,950
Inventory 136,500
Accrued expenses 11,850
Accumulated depreciation 82,310
Notes payable 32,570
Preferred stock 8,000
Retained earnings 89,280
Current portion of L-T debt 4,080
Long-term debt 134,300
Accounts receivable 105,770
Additional paid-in capital 71,600
Accounts payable 50830
Common stock ($0.50 par) 60,000
Cash & Equivalents ?
Marketable securities 20,500
Explanation / Answer
INCOME STATEMENT
gross sales 3210000
less returns: 48000
net sales= 3162000
less: COGS 2433000
gross profit= 729000
less expenses
advertisement 78000
depreciation 78000
lease payment 52000
management salary 240000
R&D expense 35000
repairs 22000
interest exp 64000
taxes 51000
total exp 620000
net profit transferred to retained earnings 109000 (this amount will be added to retained earnings balance)
treasury stock of 20000 will be a deduction from the amount in shareholder's equity
BALANCE SHEET
ASSETS LIABILITIES & SHAREHOLDER'S EQUITY
CURRENT ASSETS CURRENT LIABILITIES
cash & cash equivalents ? accounts payable 50830
receivables 105770 current portion of L.T debt 4080
inventories 136500 accrued exp 11850
marketable sec 20500 notes payable 32570
total current assets total current liabilities 99330
PROPERTY &EQUIPMENT LONG TERM DEBT 134300
gross fixed assets 284950 SHAREHOLDER'S EQUITY
less : accumulated dep 82310 preferred stock 8000
net fixed assets 202640 common stock 6000
additions to capital 71600
retained earnings 198280
less : treasury stock 20000
total shareholder's equity 263880
TOTAL ASSETS 497510 TOTAL LIABILITIES & SHAREHODER'S EQUITY 497510
total current assets= 497510- 202640 = 294870
294870= 105770 + 136500 +20500+ cash & cash equivalents
So cash & cash equivalents= 32100
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