Question

Prepare an income statement and the current assets section of the balance sheet for Case 1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $ 4,000 , Receivables (net) $ 15,000 , Raw Materials $ 600 , and Prepaid Expenses $ 400

case 1 data:

Direct materials used Direct labor Manufacturing overhead Total manufacturing costs $9,600 5,000 8,000 22600 1,000 Beginning work in process inventory Ending work in process inventory 6600 24,500 2,500 Sales revenue Sales discounts Cost of goods manufactured Beginning finished goods inventory Goods available for sale 17,000 3000 20,000 16600 Cost of goods sold Ending finished goods inventory Gross profit 3,400 5400 2,500 2900 Operating expenses Net income

income statement blanks:

partial balance sheet blanks:

Answer 1

Income Statement $24,500 4 Sales Revenue 5 Less: Sales Discount 6 Net Sales 22,000 8 Cost of Goods Sold 9 Finished Goods Inventorv, Be 10 Gost of Goods Manufatured 11 Cost of Goods Available for Salte 12 Less: Finished Goods Inventorv, Endin 13 Cost of Goods Sold 14 Gross Profit 15 16 Net Profit(loss) 17 18 19 Current Assets 20 Cash 21 Receivables 22 Inventories 23 Finished Goods 24 Work in Process 25 Raw Materials 26 Prepaid Expenses 27 28 Total Current Assets S 3,000 $17,000 $20,000 S (3,400) $16,600 S 5,400 2,500 $ 2.900 ating Expenses (Partial) Balance Sheet $ 4,000 $15,000 3,400 6,600 S 600 $10,600 S 400 30,000