Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of
Question:
Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items:
Depreciation expense...............$ 66,000
Cash .................... 225,000
Long-term debt .................. 334,000
Sales .................... 573,000
Accounts payable ............... 102,000
General and administrative expense ........ 79,000
Buildings and equipment ............ 895,000
Notes payable ................. 75,000
Accounts receivable .............. 167,500
Interest expense ................. 4,750
Accrued expenses ............... 7,900
Common stock ................ 289,000
Cost of goods sold ................ 297,000
Inventory ................... 99,300
Taxes .................... 50,500
Accumulated depreciation ............. 263,000
Taxes payable ................. 53,000
Retained earnings ................. 262,900
a. Prepare an income statement for the Warner Company.
b. Prepare a balance sheet for the Warner Company.
c. What can you say about the firm’s financial condition based on these financial statements?
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 b c We first classify Warners accounts as follows Expenses and revenues belong on the income state...View the full answer
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
