Question

For the below Income Statement and Balance Sheet, you are to match the Available Choices with the Accounts that are missing numbers.

Gross margin	100,000
Accounts receivable	15,000
Goodwill	10,000
Net income	20,000
Cash and cash equivalents	10,000
Inventories	20,000
Retained earnings	20,000
Cost of Goods Sold	400,000
Property, plant and equipment, net	150,000
Operating income	30,000
Bank notes	13,000
Income before income taxes	26,000
Total assets	250,000
S&GA expenses	50,000
Long-term debt	30,000
Accounts payable	12,000
Deferred tax assets (a current asset for this company)	2,000
Total current liabilities	30,000
Other current assets	3,000
Other long term assets	10,000
Addition to Retained Earnings	12,000
Common stock	120,000
Vendor receivables	5,000
Total liabilities	100,000
Total current assets	60,000
Fill in the following missing numbers.
Line of credit (a current liability account)
Dividends paid
Stockholder Equity
Long-term marketable securities
Revenues
Short-term marketable securities (a current asset account)
Interest paid
Depreciation
Income taxes
Preferred Stock capital
Medium-term bonds (debt)

This format is somewhat confusing as below these comments you see a list of accounts adjacent to a list of numbers. Usually, some of the numbers are correct by sheer chance. Your job is to use all of the numbers with all of the accounts. Use the pull-down menu to match the proper account to the correct number.

Question 15 options:

Depreciation Long-Term marketable securities Short-term marketable securities (a current asset account) Income taxes Interests paid Revenues Line of credit (a current liability account) Medium-term bonds (debt) Dividends paid Preferred Stock capital Stockholders equity

1. 20,000 2. 4,000 3. 500,000 4. 8,000 5. 6,000 6. 20,000 7. 5,000 8. 40,000 9. 150,000 10. 10,000 11. 5,000

Answer 1

Solution:
We need to start preparing Income statement and Balance Sheet from the given correct numbers in order to find correct missing numbers
This is not the fine tuned Income Statement or Balance Sheet but just the classification to find missing numbers
Income Statement
Expense	Amount		Income	Amount
Cost of goods sold	400000		Revenue	500000	Gross Margin plus cost of goods sold)
Gross Margin	100000
Total	500000			500000
			Gross Margin	500000
S&GA Expense	50000
Operating Income	30000
Interest Paid	4000	(difference between operating income and income before income tax)
Income before income tax	26000
Income Tax	6000	(difference between net income and income before income tax)
Net Income	20000
Dividend Paid	8000
Addition to retained earning	12000	(as 12000 was addition to retained earning so 8000 is dividend paid)
Balance Sheet
Liabilities	Amount	Amount	Assets	Amount	Amount
Long Term Debt		30000	Property, Plant and Equipment (Net)		150000
Current Liabilities			Other Long Term Asset		10000
Accounts Payable	12000
Bank Note	13000
Line of credit	5000		Long Term Marketable Securities		20000	(Balancing figure after reducing all items from total assets)
(diff between total current liabilities and above)
Total Current Liabilities		30000
Medium-term bonds (debt)		40000
(diff between total liabilities less current liabilities and long term debt)
Total Liabilities other then shareholder fund		100000
			Current Assets
			Accounts Receivable	15000
			Cash/Cash Equal	10000
			Inventories	20000
Retained Earning		20000	Deferred Tax Asset	2000
			Other Current Asset	3000
Common Stock		120000	Vendor Receivable	5000
			Short-term marketable securities (a current asset account)	5000		(Number 7 which is the difference of 60000 and 55,000 as above)
Preference Stock		10000	Total Current Asset		60000
(diff between total liabilities and all others)
			Goodwill		10000
Total Share holder funds as above		150000
Total Liabilities		250000	Total Assets		250000
Final Answer:
Fill in the following missing numbers.				Number	Amount
Line of credit (a current liability account)				11	5000
Dividends paid				4	8000
Stockholder Equity				9	150000
Long-term marketable securities				6	20000
Revenues				3	500000
Short-term marketable securities (a current asset account)				7	5000
Interest paid				2	4000
Depreciation				1	20000	(Last item left)
Income taxes				5	6000
Preferred Stock capital				10	10000
Medium-term bonds (debt)				8	40000