Alice Springs Merchandise is a retail company that sells general household products. Account balances for the companys
Question:
Alice Springs Merchandise is a retail company that sells general household products. Account balances for the company’s fiscal years ended January 31, 2004, and 2005 are provided on the shown below. Changes in balance sheet account balances also are provided. Additional information for the 2005 fiscal year includes the following:
• The company paid $38,802 for additional property and equipment and received cash from the sale of equipment of $1,967.
• Amounts borrowed or repaid are equal to changes in Notes Payable, Current and changes in Notes Payable, Long-Term.
• The change in Common Stock is the amount of stock issued or repurchased during the year.
• The balance of Retained Earnings includes the effects of net income and dividends.
Required
From the information provided, prepare the following in good form.
A. An income statement containing separate columns for 2005 and 2004.
B. A balance sheet containing separate columns for 2005 and 2004.
C. A schedule like Exhibit 3 in this chapter (page F183) that includes the adjustments necessary to calculate operating cash flow. The adjustments should be the changes in the appropriate account balances.
D. A statement of cash flows for 2005 using the direct method.
E. A statement of cash flows for 2005 using the indirectmethod.
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Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
A Alice Springs Merchandise Income Statement For the Year Ended January 31 2005 2004 Sales revenue 589351 530666 Cost of goods sold 359504 328343 Gross profit 229847 202323 Operating expenses Wages ex...View the full answer
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
