Question

Please prepare a balance sheet with the information below.

Retained Earnings
Retained Earnings				14,544
Net Income				10,777
Dividends Distributed				(6,577)
Retained Earnings Ending Balance				18,744

Income Statement
Sales	56,875
Cost of Goods Sold	32,733
Gross Profit	24,142
Operating and Admin Expenses
Salaries Expense	3,255
Depreciation Expense: Equipment	322
Depreciation Expense: Building	460
Bad Debt Expense	896
Insurance Expense	1,100
Other Expenses	956
Operating and Admin Expenses	6,989
Operating Income	17,153
Non Operating Income
Interest Income	22
Non Operating Expenses
Interest Expense	1,555
Loss on Disposition of Equipment	42
Total Non Operating Expense	1,597
Income Before Tax	15,578
Income Tax Expense	4,801
Net Income	10,777

Adjusted Trial Balance

December 31, 2015

Debit

Credit

Cash

$              2,691

Accounts Receivable

                 5,526

Allowance for Doubtful Accounts

$                        668

Inventory

               12,596

Prepaid Insurance

                    145

Notes Receivable

                    365

Equipment

               15,800

Building

               18,560

Land

                 4,255

Accumulated Depreciation: Equipment

                        3,245

Accumulated Depreciation: Building

                        5,656

Accounts Payable

                        5,663

Notes Payable

                      15,500

Salaries Payable

                           145

Interest Payable

                             67

Income Taxes Payable

                        4,650

Common Stock

Par

$ 0.10

                           280

Additional Paid-In Capital

                        5,320

Retained Earnings

                      14,544

Dividends Distributed

                 6,577

Sales (Revenue)

                      56,875

Interest Earned

                             22

Cost of Goods Sold

               32,733

Salaries Expense

                 3,255

Other Expenses

                    956

Loss on Disposition of Equipment

                      42

Depreciation Expense: Equipment

                    322

Depreciation Expense: Building

                    460

Bad Debt Expense

                    896

Insurance Expense

                 1,100

Interest Expense

                 1,555

Income Tax Expense

                 4,801

$          112,635

$                 112,635

Answer 1

Use of funds	Amount.($)
Current Assets
Cash	2691
Accounts receivable(net of baddebts)	4858
Inventory	12596
Prepaid insurance	145
Notes Receivable	365
Total		20655$
Non current Assets:
Equipment	15800
Building	18560
Land	4255
Total		38615
Total of assets		59270
Sources of Funds
Accumulated Depreciation Equipment		3245
Accumulated Depreciation Building		5656
Current Liabilities:
Accounts Payable	5663
Notes payable	15500

Salaries payable	145
Interest Payable	67
Income tax payable	4650
Total current liabilities		26025
Common stock		280
Additional capital		5320
Retained earnings		27645
Total of Liabilities		59270