Question
1) Prepare an income statement from the following information. Sales: $600,000 Cost of Goods Sold: $300,000 Administrative expenses: $50,000 Depreciation expenses: $10,000 Interest expense: $15,000
1) Prepare an income statement from the following information.
Sales: $600,000
Cost of Goods Sold: $300,000
Administrative expenses: $50,000
Depreciation expenses: $10,000
Interest expense: $15,000
Tax rate: 20%
2) Prepare a balance sheet from the following information.
Cash: $110,000
Accounts receivable: $50,000
Accounts payable: $40,000
Notes payable (short term): $120,000
Inventories: $70,000
Gross fixed assets: $175,000
Other assets: $15,000
Retained earnings: $15,000
Accumulated depreciation: $20,000
Long term banknote: $105,000
Other long-term debt: $20,000
Common stock: $100,000
3) Prepare a statement of cash flows using the following information.
Increase in accounts receivable: $600
Increase in inventories: $160
Increase in long term debt: $160
Beginning cash: $6,000
Increase in accounts payable: $120
Increase in other current assets: $300
Dividends: $80
Increase in common stock: $20
Increase in gross fixed assets: $100
Depreciation expense: 3,000
Net income: $1,000
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