5 - Develop a Balance Sheet, Retained Earnings and Net Income Statements based on the information listed below. The tax rate is 40%. Amounts in M$ 1/1 Retained Earnings Balance 130 Sales 1,000 Accumulated Depreciation 400 Accounts Payable 150 Initial Equipment Purchase Price 800 Dividends Paid 50 Cost of Goods Sold 500 Long Term Notes 200 Short Term Notes 42 Inventory 200 Depreciation Expense 10 Accounts Receivable 150 Administration Costs 150 Interest Expense 10 Cash 20 Common Stock 100

5A Net Income Statement

5B Retained Earnings Statement

5C Balance Sheet

Assets Liability & Equity