6.(Working with an income statement and balance sheet) Make a balance sheet and income statement for the Warner Company from the following scrambled list of items.

Make a common-sized income statement and 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 Marketing, and general, and administrative expenses 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 earnings 262,900

7.(Working with a statement of cash flows) Given the following information, Make a statement of cash flows. Dividends $25 Increase in common stock 27 Increase in accounts receivable 65 Increase in inventories 5 Operating income 215 Increase in accounts payable 40 Interest expense 50 Depreciation expense 20 Increase in bank debt 48 Increase in accrued expenses 15 Increase in gross fixed assets 55 Income taxes 45

8.(Working with a statement of cash flows) Make a statement of cash flows for Abrahams Manufacturing Company for the year ended December 31, 2015. Interpret your results.

Abrahams Manufacturing Company Balance Sheet for 12/31/2014 and 12/31/2015 2014 2015 Cash $ 89,000 $100,000 Accounts receivable 64,000 70,000 Inventory 112,000 100,000 Prepaid expenses 10,000 10,000 Total current assets 275,000 280,000 Gross plant and equipment 238,000 311,000 Accumulated depreciation (40,000) (66,000) Total assets $473,000 $525,000 Accounts payable $ 85,000 $90,000 Accrued liabilities 68,000 63,000 Total current debt 153,000 153,000 Mortgage payable 70,000 0 Preferred stock 0 120,000 Common stock 205,000 205,000 Retained earnings 45,000 47,000 Total debt and equity $473,000 $525,000