5. For each of the following, determine the missing balance (Hint:this will be easier if you set up the financial statement and then calculate the missing information). 1. Net Income $82,900 Cost of Goods Sold $609,030 Advertising Expense $46,000 Gain/Loss on Sale of Equipment ? Income Tax Expense $50,000 Sales Revenue $799,000 2. Net Income $6,500 Retained Earnings, 12/31 End of year $16,200 Dividends ? Retained Earnings, 1/1 Beginning of year $12,400 3. Cash $460,000 Accounts Receivable $540,200 Current Assets $1,670,000 Inventory ? 4. Total Assets $54,000 Total Liabilities $32,000 Capital Stock $15,000 Retained Earnings ? 6. Rescue Records needs rescuing. The downloading of songs and other media are killing its business. The owners of Rescue want to know if they made a net income or a net loss for the year ended December 31. Given the following account balances, prepare an income statement for Rescue similar to Figure 3.1 Income Statement. Advertising Expense $4,600 Salary Expense $25,470 Cost of Goods Sold $109,000 Sales Revenue $197,000 Income Tax Expense $3,800 Loss on Sale of Extra shelving units $4,090 Rent Expense $32,000 7. Your lawn care business, A Cut Above, has grown beyond your wildest dreamsto the point where you would like to buy some new equipment and hire some people to help you. Unfortunately, you dont have that kind of money sitting around, so you are applying for a loan. The bank has requested financial statements, including, of course, a balance sheet. The following are the balances you have on 5/31. Prepare a classified (show current and long term) balance sheet to submit to the bank. Cash $2,400 Prepaid Insurance $1,400 Note Payable Due Two Years from Now (Loan from Mom) $5,000 Capital Stock (Money You Invested to Start Business) $2,000 Accounts Receivable $500 Supplies Inventory $300 Equipment, Net $3,000 Accounts Payable $300 Retained Earnings $300 8. Maria Sanchez, an accountant by trade, moonlights as a personal trainer. Maria is curious about her cash inflows and outflows from her personal work for the month of February. Using the following information, prepare a statement of cash flows for Maria (make sure you have all three sections of the cash flow statement). Cash for Supplies Inventory $500 Cash for Advertising $400 Cash Paid for Equipment $900 Cash Received from Bank Loan $1,000 Cash Paid for Insurance $700 Cash Received from Customers $2,200 Cash Paid for Taxes $400 Cash Balance, 2/1 - beginning of the month $500