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3 Problem 3-8 Financial Statements (L01) 9.09 points Henry Josstick has just started his first accounting course and has prepared the following balance sheet and

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3 Problem 3-8 Financial Statements (L01) 9.09 points Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go In the balance sheet or income statement and whether it is an asset or liability, BALANCE SHEET 5 35 Inventories 120 Receivables $50 35 Tayables Les accumulated depreciation Total current assets Long-term debt Property, plant, and equipment Net fixed assets Total current liabilities Interest expense Total liabilities 5350 520 525 Shareholders equity $90 Total assets Total liabilities and shareholders' equity $700 580 38 INCOME STATEMENT Net sales cost of goods sold Selling, general, and administrative expenses EBIT Debt due for repayment Cash Taxable income 5 25 15 $ 15 Taxe Depreciation slet Income 12 Prepare the balance sheet and income statement by rearranging the above items. (Be sure to list the assets and liabilities in order of their liquidity, Enter all amounts as positive values.) 3 Answer is complete but not entirely correct. BALANCE SHEET 9.09 points Assets $ OOO 36 26 > Cash Receivables Inventories Total current assets Property, plant, and equipment Less accumulated depreciation Net fixed assets 107 $ $ Liabilities and Shareholders' Equity 16 Payables $ 40 Debt due for repayment 51 Total current liabilities $ 525 Long-term debt 121 Total liabilities $ Shareholders' equity OS 511 Total liabilities and shareholders' equity $ 62 355 417 404 94 IS IS Total assets 511 Answer is not complete. INCOME STATEMENT $ 710 585 x 125 30 Net sales Cost of goods sold Net sales Selling, general, and administrative expenses EBIT Interest expenses Taxes Depreciation Net Income IS (30) 26 (65) xls IS (65)

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