From the income
statement:
Depreciation expense
Interest expense
$170,000
25,000
Income tax
Net income
34,000
73,000...
From the income
statement:
Depreciation expense
Interest expense
$170,000
25,000
Income tax
Net income
34,000
73,000
From the balance sheet:
Current liabilities
$95,000
Long-term debt
560,000
Deferred income taxes
28,000
Total Liabilities
$680,000
Preferred stock
7,000
Common stock
225,000
Premium on common stock
125,000
Retained earnings
445,000
Total Stockholders’ Equity
$802,000
Total Liabilities & Stockholders’ Equity
$1,482,000
What is the Times Interest Earned ratio?
_________ /_______ = ___________
What is the Debt/Assets (Debt)
ratio? ________________ /___________ =
__________...
Use the statements below to answer the questions that
follow:
Income Statement for the Year Ended,...
Use the statements below to answer the questions that
follow:
Income Statement for the Year Ended, December 31,
2017
Sales
150,000
Expenses
Cost of Goods Sold
80,000
Operating Expenses
30,000
EBIT (aka Operating Profit)
40,000
Interest
8,000
Income Tax
13,000
Total Expenses
131,000
Net Operating Income
19,000
Other Income
Gain on Sale of Equipment
10,000
Net income
29,000
Balance Sheet
31-Dec-17
31-Dec-16
Assets
Current Assets
Cash
95,000
78,000
Accounts Receivable
60,000
82,000
Finished Goods
25,000
50,000
Materials Inventory
110,000
80,000...
Income statement and balance sheet data for The Sports Shack are
provided below.
The Sports Shack...
Income statement and balance sheet data for The Sports Shack are
provided below.
The Sports Shack
Income Statements
For the years ended December 31
2019
2018
Sales revenue
$8,200,000
$6,600,000
Cost of goods sold
6,100,000
4,700,000
Gross profit
2,100,000
1,900,000
Expenses:
Operating
expenses
1,450,000
1,400,000
Depreciation
expense
90,000
100,000
Interest
expense
25,000
50,000
Income
tax expense
95,000
80,000
Total
expenses
1,660,000
1,630,000
Net income
$440,000
$270,000
The Sports Shack
Balance Sheets
December 31
Assets
2019
2018
2017
Current assets:
Cash...
Income Statement
Sales revenues
760,500
cost of goods sold
225,000
Operating expenses (excluding depreciation)
166,500
Depreciation...
Income Statement
Sales revenues
760,500
cost of goods sold
225,000
Operating expenses (excluding depreciation)
166,500
Depreciation expenses
13,500
Loss on disposal of equipment
4,500
Interest expenses
63,000
Total operating expenses
(472,500)
income before taxes
288,000
income tax expense
(70,500)
net income
217,500
Statement of financial Positions
31/12/2019
31/12/2018
Assets
Cash
82,500
49,500
accounts receivables
30,000
45,000
inventory
22,500
15,000
prepaid insurance
7,500
1,500
Land
195,000
30,000
Building
240,000
60,000
less: accumulated depreciation- Building
(16,500)
(7,500)
Equipment
40,500
15,000
less: accumulated...
The following are relevant account balances from ABC’s
comparative balance sheet and 2019 income statement.
...
The following are relevant account balances from ABC’s
comparative balance sheet and 2019 income statement.
ABC’s balance sheets:
December 31, 2019
January 1, 2019
Cash
$ 6,000
$ 9,000
Accounts receivable
8,000
12,000
Merchandise inventory
29,000
18,000
Prepaid rent
6,000
4,000
Equipment
100,000
80,000
Accumulated depreciation
(28,000)
(13,000)
Total assets
$121,000
$110,000
Accounts payable
$ 9,000
$ 25,000
Unearned Revenue
6,000
4,000
Common stock
38,000
32,000
Retained earnings
68,000
49,000
Total liabilities and shareholders’ equity...
Joyner Company’s income
statement for Year 2 follows:
Sales
$
705,000
Cost of goods
sold
58,000 ...
Joyner Company’s income
statement for Year 2 follows:
Sales
$
705,000
Cost of goods
sold
58,000
Gross margin
647,000
Selling and
administrative expenses
217,000
Net operating
income
430,000
Gain on sale of
equipment
6,000
Income before
taxes
436,000
Income taxes
174,400
Net income
$
261,600
Its balance sheet amounts at the
end of Years 1 and 2 are as follows:
Year 2
Year 1
Assets
Cash
$
205,000
$
85,700
Accounts
receivable
259,000
141,000
Inventory...
The balance sheet and income statement for Rocket Corporation
are as follows: Balance Sheet as of...
The balance sheet and income statement for Rocket Corporation
are as follows: Balance Sheet as of December 31, 2019 ASSETS
LIABILITIES & EQUITY Cash & marketable sec. $3,500 Accounts
payable $38,000 Accounts Receivable 47,000 Taxes payable 9,000
Inventory 13,000 Short-term borrowings 20,500 Total current assets
$63,500 Total current liabilities $67,500 Net P,P & E $452,000
Long-term debt $200,000 Total liabilities $267,500 Common stock at
par $80,000 Additional paid-in capital $45,000 Retained earnings
$123,000 TOTAL ASSETS $515,500 TOTAL LIABILITIES & EQUITY...
Joyner Company’s income statement for Year 2 follows: Sales $
708,000 Cost of goods sold 126,000...
Joyner Company’s income statement for Year 2 follows: Sales $
708,000 Cost of goods sold 126,000 Gross margin 582,000 Selling and
administrative expenses 217,000 Net operating income 365,000 Gain
on sale of equipment 9,000 Income before taxes 374,000 Income taxes
112,200 Net income $ 261,800 Its balance sheet amounts at the end
of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $
211,800 $ 99,400 Accounts receivable 262,000 112,000 Inventory
320,000 281,000 Prepaid expenses 9,500...
Major Manuscripts, Inc. 2009 Income Statement
Net sales
7,600
Cost of goods sold
6,665
Depreciation
210...
Major Manuscripts, Inc. 2009 Income Statement
Net sales
7,600
Cost of goods sold
6,665
Depreciation
210
Earnings before interest and taxes
725
Interest paid
21
Taxable Income
704
Taxes
245
Net income
459
Dividends
206
Major Manuscripts, Inc. 2009 Balance Sheet
2009
2009
Cash
2,150
Accounts payable
1,550
Accounts rec.
860
Long-term debt
280
Inventory
2,300
Common stock
2,500
Total
5,310
Retained earnings
4,000
Net fixed assets
3,020
Total assets
8,330
Total liabilities & equity
8,330
Major Manuscripts, Inc....