Question

Self-Assessment Quiz Financial Statements Income Statement Sell Assessment Quiz Financial Information All values are end of year unless otherwise stated Accounts Payable 12,000 Accounts Receivable 10,000 Accruals 10,000 Accumulated Depreciation 100,000 Beginning of year Inventory 50,000 Beginning of year Retained Earnings 120.000 Cash 7.000 Common Stock 121,500 Cost of Goods Sold 200,000 Current Portion - Long Term Debt 1,500 Depreciation Expense 25,000 Dividends 40,000 Gross Property, plant, and Equipment 400,000 Interest Expense 15,000 Long Term Debt (excluding current portion) 120,000 Net Sales 400,000 Operating Expenses (excluding depreciation) 40,000 Purchases 250,000 Tax rate 40% Net Sales Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense ERIT Interest Expense EBT Income Taxes Net Income Less Dividends Additions to R.E. Balance Sheet Cash Accounts Receivable Inventory Total Current Assets Gross Property, Plant and Equipment Accumulated Depreciation Net Property, Plant and Equipment Total Assets Accounts Payable Accruals Current Portion - Long Term Debt Total Current Liabilities Long Term Debt Common Stock Retained Earnings Total Equity and Liabilities

Answer 1

Income statement Net sales A cous Gross Profit Operating expenses Depreciation expense EBIT Interest expense EBT Income taxa Net income. less dividends Additions to RE $400ooo $200000 $200000 $40000 $25000 $135000 $ 15000 $120000 $48000 $ 72000 $40000 $32000 22 SUNDAY

29 30 Balance sheet Cash Accounts Recievable Inventory $7000 $10000 B 100000 $117000 Total current alset Gross Property Accumulated Deph Net propecty, P&E Total Asset $400000 $ 100.000 $ 300000 $417000 to $12000 $70000 Accounts Payable Acesuals Current Poction Total cL setion - longtem $1500 $23500

Long term debt $120000 Common stock Retained camning - lola equity & Mabilities $121500 $152000 $417060

Closing inventory = purchase + beg inventory - cogs

= $250000+$50000-$200000

= $100000