1 2 Edman Company Balance Sheets Beginning Ending Average 3 Balanced Sheet: Balance Balance Balance 4 Assets 5 Cash $ 150,000 $ $ 75,000 6 Accounts receivable $ 180,000 7 Inventory $ 240,000 8 Property, plant & equipment (net) $ 793,000 9 Other assets $ 37,000 10 Total assets $ 1,400,000 $ 75,000 11 12 Liabilities & stockholders' equity 13 Accounts payable $ 80,000 14 Bonds payable $ 550,000 15 Common stock $ 410,000 16 Retained earnings $ 360,000 17 Total liabilities & stocholders' equity $ 1,400,000 $ $ 18 19 Edman Company 20 Income Statement 21 Sales $ 2,500,000 22 Variable expenses 23 Cost of goods sold 24 1,600,000 240,000 Variable selling expense 25 Total variable expenses 26 Contribution margin 1,840,000 660,000 27 Fixed expenses: 28 Fixed selling expense 220,000 29 Fixed administrative expense 300,000 30 Total fixed expenses 520,000 31 Net operating income 140,000 32 Interest expense (8%) 33 Net income before tax 34 Tax expense (30%) 35 Net income 36 37 140,000 42,000 98,000 Charts Requirement 1 Financials Requirement 2 DuPont Diagra