Question

The CFO of Green Dating Service, Inc. has just collected the following data for December 31, 2017. Write a balance sheet and income statement. Accounts Receivable 250,000 Accounts Payable 260,000 Capital Surplus 100,000 Cash 190,000 Common Stock 300,000 Costs 640,000 Depreciation Expense 40,000 Dividends 26,750 Net Furniture & Fixtures 200,000 Goodwill 180,000 Interest Expense 50,000 Inventory 175,000 Land 305,000 Line of Credit (used) 200,000 Long Term Loan 340,000 Retained Earnings ? Sales 925,000 Tax rate 35%

Answer 1

Freen Dating Service, Inc
Statement of Net income
for December 31, 2017
Sales		925000
Costs	640000
Depreciation Expense	40000
Interest Expense	50000	730000
Profit Before Tax		195000
Tax 35%		68250
Net Income		126750

Balance Sheet
Assets
Cash	190000
Accounts Receivable	250000
Inventory	175000
Land	305000
Net Furniture & Fixtures	200000
Goodwill	180000
Total Assets	1300000
Liabilities and Equtiy
Accounts Payable	260000
Line of Credit	200000
Long Term Loan	340000
Total Liabilities	800000
Equtiy
Common Stock	300000
Capital Surplus	100000
Retained Earnings (126750-26750)	100000
Total Equity	500000
Total Liabilities and Equtiy	1300000