Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December...
Financing Deficit
Garlington Technologies Inc.'s 2016 financial statements are
shown below:
Balance Sheet as of December 31, 2016
Cash
$ 180,000
Accounts payable
$ 360,000
Receivables
360,000
Notes payable
156,000
Inventories
720,000
Line of credit
0
Total current assets
$1,260,000
Accruals
180,000
Fixed assets
1,440,000
Total current liabilities
$ 696,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Income Statement for December 31, 2016
Sales
$3,600,000
Operating costs
3,279,720
EBIT
$ 320,280
Interest
18,280
Pre-tax earnings
$ 302,000
Taxes...
Financing Deficit
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31,...
Financing Deficit
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales
$4,000,000
Operating costs
3,200,000
EBIT
$ 800,000
Interest
120,000
Pre-tax earnings
$ 680,000
Taxes (25%)
170,000
Net income
510,000
Dividends
$ 190,000
Balance Sheet as of December 31, 2019
Cash
$ 160,000
Accounts payable
$ 360,000
Receivables
360,000
Line of credit
0
Inventories
720,000
Accruals
200,000
Total CA
$1,240,000
Total CL
$ 560,000
Fixed assets
4,000,000
Long-term bonds
1,000,000
Total Assets
$5,240,000
Common stock
1,100,000
RE
2,580,000
Total...
Financing Deficit Garlington Technologies Inc.'s 2019 financial
statements are shown below:
Income Statement for December 31,...
Financing Deficit Garlington Technologies Inc.'s 2019 financial
statements are shown below:
Income Statement for December 31, 2019
Sales $4,000,000
Operating costs 3,200,000
EBIT $ 800,000
Interest 120,000
Pre-tax earnings $ 680,000
Taxes (25%) 170,000
Net income 510,000
Dividends $ 190,000
Balance Sheet as of December 31, 2019
Cash $ 160,000
Accounts payable $ 360,000
Receivables 360,000
Line of credit 0
Inventories 720,000
Accruals 200,000
Total CA $1,240,000
Total CL $ 560,000
Fixed assets 4,000,000
Long-term bonds 1,000,000
Total Assets $5,240,000...
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales...
Garlington Technologies Inc.'s 2019 financial statements are
shown below:
Income Statement for December 31, 2019
Sales
$4,000,000
Operating costs
3,200,000
EBIT
$ 800,000
Interest
120,000
Pre-tax earnings
$ 680,000
Taxes (25%)
170,000
Net income
510,000
Dividends
$ 190,000
Balance Sheet as of December 31, 2019
Cash
$ 160,000
Accounts payable
$ 360,000
Receivables
360,000
Line of credit
0
Inventories
720,000
Accruals
200,000
Total CA
$1,240,000
Total CL
$ 560,000
Fixed assets
4,000,000
Long-term bonds
1,000,000
Total Assets
$5,240,000
Common stock
1,100,000
RE
2,580,000
Total L&E
$5,240,000...
Morrissey Technologies Inc.'s 2019 financial statements are
shown here.
Morrissey Technologies Inc.: Balance Sheet
as of...
Morrissey Technologies Inc.'s 2019 financial statements are
shown here.
Morrissey Technologies Inc.: Balance Sheet
as of December 31, 2019
Cash
$180,000
Accounts payable
$360,000
Receivables
360,000
Notes payable
56,000
Inventories
720,000
Accrued liabilities
180,000
Total current assets
$1,260,000
Total current liabilities
$596,000
Long-term debt
100,000
Fixed assets
1,440,000
Common stock
1,800,000
Retained earnings
204,000
Total assets
$2,700,000
Total liabilities and equity
$2,700,000
Morrissey Technologies Inc.: Income
Statement for December 31, 2019
Sales
$3,600,000
Operating costs including depreciation
3,279,720
EBIT
$320,280...
Financing Deficit
Stevens Textile Corporation's 2018 financial statements are
shown below:
Balance Sheet as of December...
Financing Deficit
Stevens Textile Corporation's 2018 financial statements are
shown below:
Balance Sheet as of December 31, 2018 (Thousands of
Dollars)
Cash
$ 1,080
Accounts payable
$ 4,320
Receivables
6,480
Accruals
2,880
Inventories
9,000
Line of credit
0
Total current assets
$16,560
Notes payable
2,100
Net fixed assets
12,600
Total current liabilities
$ 9,300
Mortgage bonds
3,500
Common stock
3,500
Retained earnings
12,860
Total assets
$29,160
Total liabilities and equity
$29,160
Income Statement for January 1 - December 31, 2018...
The most recent financial statements for Retro Machine, Inc.,
follow. Sales for 2017 are projected to...
The most recent financial statements for Retro Machine, Inc.,
follow. Sales for 2017 are projected to grow by 10 percent.
Interest expense will remain constant; the tax rate and the
dividend payout rate will also remain constant. Costs, other
expenses, current assets and accounts payable increase
spontaneously with sales.
RETRO MACHINE, INC.
2016 Income Statement
Sales
$
744,050
Costs
578,850
Other expenses
15,550
Earnings before interest and
taxes
$
149,650
Interest paid
11,300
Taxable income
$
138,350
Taxes (35%)
48,423...
Consider the following financial statements for Industrial
Supply Company.
(Actual)
December 31,
Balance sheet
Year 1...
Consider the following financial statements for Industrial
Supply Company.
(Actual)
December 31,
Balance sheet
Year 1
Comments
Assets
Cash
$ 400,000
20% increase (assumption)
Accounts receivable
2,000,000
20% increase (assumption)
Inventories
4,400,000
20% increase (assumption)
Total current assets
$ 6,800,000
Fixed assets, net
$ 1,200,000
20% increase (assumption)
Total assets (A)
$ 8,000,000
Liabilities and Equity
Accounts payable (CL)
$ 1,200,000
20% increase (assumption)
Notes payable
1,500,000
Total current liabilities
$ 2,700,000
Long-term debt
500,000
No change (assumption)
Stockholders’ equity
4,800,000
Total liabilities and equity
$ 8,000,000...
The following is the balance sheet for 2016 for Marbell Inc.
Marbell Inc.
Balance Sheet
12/31/2016...
The following is the balance sheet for 2016 for Marbell Inc.
Marbell Inc.
Balance Sheet
12/31/2016
Assets
Liabilities & Shareholders’ Equity
Cash
$15,000
Accounts Payable
$90,000
Accounts
Receivable
90,000
Accrued Expenses
7,500
Inventory
60,000
Notes
Payable
30,000
Current
Assets
165,000
Current Liabilities
127,500
Capital
Assets
60,000
Common
Stock
75,000
Retained Earnings
22,500
Total
Assets
$225,000
Total L &
S.E.
$225,000
Sales for 2016 were $300,000. Sales for 2017 have been...