114 PART 1 The Scope and Environment of Financial Management 3-7. (Working with an income statement and balance sheet) Prepare a balance sheet and income statement for Kronlokken Company from the following scrambled list of items. a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings. 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 153,000 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 Prepaid expenses 14,500 Taxes payable 53,000 Retained camings 262,900 3-8. Working with an income statement and balance sheet) Prepare an income statement and a balance sheet for Lippo Group from the following scrambled list of items. What is the firm's networking capital and debt ratio? Sales $553,000 Accumulated depreciation 192.000 Cash Cost of goods sold 325.000 Accounts receivable 74,000 Depreciation expenses 40.000 Accounts payable 66.000 Interest expense 24,000 Short-term noles payable 30,000 Income taxes 59,850 Inventories 46,000 Marketing general and administrative expenses 47,000 Gross fixed assets 650,000 Long-term debt 365.000 Common stock 125.000 Other assets 17.000 Retained earnings 138,500 In addition, the firm has 12.000 shares outstanding and paid $18,000 in common stock dividends during the year. 114 PART 1 The Scope and Environment of Financial Management 3-7. (Working with an income statement and balance sheet) Prepare a balance sheet and income statement for Kronlokken Company from the following scrambled list of items. a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings. 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 153,000 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 Prepaid expenses 14,500 Taxes payable 53,000 Retained camings 262,900 3-8. Working with an income statement and balance sheet) Prepare an income statement and a balance sheet for Lippo Group from the following scrambled list of items. What is the firm's networking capital and debt ratio? Sales $553,000 Accumulated depreciation 192.000 Cash Cost of goods sold 325.000 Accounts receivable 74,000 Depreciation expenses 40.000 Accounts payable 66.000 Interest expense 24,000 Short-term noles payable 30,000 Income taxes 59,850 Inventories 46,000 Marketing general and administrative expenses 47,000 Gross fixed assets 650,000 Long-term debt 365.000 Common stock 125.000 Other assets 17.000 Retained earnings 138,500 In addition, the firm has 12.000 shares outstanding and paid $18,000 in common stock dividends during the year