Question

Following are the income statement and balance sheet items for Faison Corporation from the company’s books and records at the end of fiscal year-end 20x1:

($ millions)
Contributed capital	$1,702
Cost of sales	13,567
Cash	1,393
Long-term liabilities	3,719
Accounts receivable	2,662
Other current assets	604
Other long-term assets	2,079
Other current liabilities	1,299
Other operating expenses	1,212
Other non-operating expenses	161
Inventory	1,093
Accounts payable	2,595
Property, net	3,216
Retained earnings	1,209
Sales	16,463
Tax expense	256
Equity income, net of tax	34
Other equity	523

Required:

Using the information above, prepare the company’s year-end income statement and a balance sheet.

Answer 1

Faison Corporation
Income Statement
As on Year Ended 20x1
Sales	16,463
Less : Cost of Sales	13,567
Gross Profit	2,896
Less : Other Operating Expense	1,212
Operating Income	1,684
Less : Other non Operating Expense	161
Income Before tax	1,523
Tax Expense	256
Net Income	1,267
Faison Corporation
Balancesheet
As on Year Ended 20x1
Assets
Cash	1,393
Accounts Receivable	2,662
Inventory	1,093
Other Current Assets	604
Property Net	3,216
Other Long term Assets	2,079
Total Assets	11,047
Liability and Equity
Accounts Payable	2,595
Other Current Liability	1,299
Long Term Liabilty	3,719
Contributed Capital	1,702
Other Equity	523
Retained Earnings	1,209
Total	11,047