Question

Microsoft Excel would be best format

Arrange the following items into an income statement and balance sheet in the normal order. Gross Profit Accounts payable $31.000 Interest $4,500 Accounts $36.000 Inventory Receivable $42,000 Labor Expense $12,000 Accumulated $45,000 Long Term Debt $50,000 Depreciation Net Fixed Assets After Tax Income Overhead $8,000 Cash $24.000 Retained Earnings $27,000 Common Stock $36.000 Sales $100,000 Cost of Goods Sold $62,000 Short Term Debt Current Assets $25,000 Taxable income Current Liabilities Taxes 35% Depreciation $6,000 Total Assets EBIT Gross Fixed Assets Total Liabilities and $112.000 Net Worth

Answer 1

Income Statement :- Particulars Amount $ Sales Revenue 1,00,000 Less: Cost of goods sold 62,000 Gross Profit 38,000 Less: Operating Expenses Labor expense 12,000 Depreciation expense 6,000 Overheads 8,000 Operating Income 12,000 Interest Expense 4,500 Income before incomes tax expense 7,500 Less: Income tax expense@35% 2,625 Net Income 4,875

Classified balance sheet :- Amount $ Liabilities Amount $ Assets Current Liabilities: Current Assets: 24,000 Accounts Payable Cash 31,000 25,000 Accounts Receivable 36,000 Short term debt Merchandising Inventory 42,000 Total Current Assets 1,02,000 Total Current Liabilities 56,000 Long term Liabilities: 50,000 Long term debt Total long term liabilities 50,000 Non-Current Assets: Owners Equity: Fixed Assets :- Gross fixed assets 1,12,000 Common stock 36,000 Less: Accumulated Depreciation (45,000) Retained earnings 27,000 Net Fixed Assets 67,000 Total Non-Current assets 67,000 Total Owner's Equity 63,000 Total Assets 1,69,000 Total Liabilities & Stockholders equity 1,69,000