Southport Company
Income Statement
For the year ended December 31, 2016
Sales &nb
Southport Company
Income Statement
For the year ended December 31, 2016
Sales
2,200,000
Cost of Goods
Sold
1,200,000
Gross Profit
1,000,000
Selling and General
Expenses
670,000
Loss on
Earthquake
200,000
Gain on
equipment
(30,000)
Interest
Expense
20,000 860,000
Net Income before
taxes
140,000
Income taxes at 30%
42,000
Net
Income
98,000
The following information becomes available to you before the
2016 statements are issued.
On July 1, 2016, the decision was made to discontinue the...
Balance Sheet
2015
2016
2017
Assets
Cash
807,000
628,000
612,000
Accounts Receivables
2,582,000
2,896,000
4,605,000
Inventories...
Balance Sheet
2015
2016
2017
Assets
Cash
807,000
628,000
612,000
Accounts Receivables
2,582,000
2,896,000
4,605,000
Inventories
2,870,000
5,181,000
7,319,000
Total Current Assets
6,259,000
8,705,000
12,536,000
Net Fixed Assets
2,216,000
2,423,000
5,538,000
Total Assets
8,475,000
11,128,000
15,074,000
Liabilities and Equity
Accounts Payable
961,000
1,648,000
3,137,000
Notes Payable
400,000
800,000
2,860,000
Accruals
440,000
800,000
1,150,000
Total Current Liabilities
1,801,000
3,248,000
7,147,000
Long Term Debt
1,350,000
1,908,000
1,867,000
Common Stock
3,650,000
3,650,000
3,650,000
Retained Earnings
1,674,000
2,322,000
2,410,000
Total Equity
5,324,000
5,972,000
6,060,000...
Nineteen Measures of Solvency and Profitability
The comparative financial statements of Blige Inc. are as
follows....
Nineteen Measures of Solvency and Profitability
The comparative financial statements of Blige Inc. are as
follows. The market price of Blige Inc. common stock was $62 on
December 31, 2016.
Blige Inc.
Comparative Retained Earnings
Statement
For the Years Ended December 31, 2016 and
2015
2016
2015
Retained earnings, January 1
$2,822,400
$2,389,100
Add net income for year
651,200
489,300
Total
$3,473,600
$2,878,400
Deduct dividends
On preferred stock
$8,400
$8,400
On common stock
47,600
47,600
Total
$56,000
$56,000
Retained earnings,...
For 2016, Indigo Company initiated a sales promotion campaign
that included the expenditure of an additional...
For 2016, Indigo Company initiated a sales promotion campaign
that included the expenditure of an additional $39,000 for
advertising. At the end of the year, Lumi Neer, the president, is
presented with the following condensed comparative income
statement:
Indigo Company
Comparative Income Statement
For the Years Ended December 31, 2016 and 2015
1
2016
2015
2
Sales
$940,000.00
$540,000.00
3
Cost of goods sold
338,400.00
205,200.00
4
Gross profit
$601,600.00
$334,800.00
5
Selling expenses
$159,800.00
$81,000.00
6
Administrative expenses
47,000.00...
Nineteen Measures of Solvency and Profitability
The comparative financial statements of Bettancort Inc. are as
follows....
Nineteen Measures of Solvency and Profitability
The comparative financial statements of Bettancort Inc. are as
follows. The market price of Bettancort Inc. common stock was
$71.25 on December 31, 2016.
Bettancort Inc.
Comparative Retained Earnings
Statement
For the Years Ended December 31, 2016 and
2015
2016
2015
Retained earnings, January 1
$2,655,000
$2,400,000
Add net income for year
300,000
280,000
Total
$2,955,000
$2,680,000
Deduct dividends:
On preferred stock
$15,000
$15,000
On common stock
10,000
10,000
Total
$25,000
$25,000
Retained earnings,...
Nineteen Measures of Solvency and Profitability
The comparative financial statements of Blige Inc. are as
follows....
Nineteen Measures of Solvency and Profitability
The comparative financial statements of Blige Inc. are as
follows. The market price of Blige Inc. common stock was $67 on
December 31, 2016.
Blige Inc.
Comparative Retained Earnings
Statement
For the Years Ended December 31, 2016 and
2015
2016
2015
Retained earnings, January 1
$1,928,600
$1,628,300
Add net income for year
456,000
333,500
Total
$2,384,600
$1,961,800
Deduct dividends
On preferred stock
$5,600
$5,600
On common stock
27,600
27,600
Total
$33,200
$33,200
Retained earnings,...