Question
A company reports the following amounts at the end of the year (all amounts in $000): Cash $23,430 Depreciation Expense $4,100 Taxes Payable $712 Mortgage
A company reports the following amounts at the end of the year (all amounts in $000):
Cash | $23,430 | Depreciation Expense | $4,100 | Taxes Payable | $712 |
Mortgage Payable | $43,500 | Land | $62,000 | Treasury Stock | $2,210 |
Sales Discounts and Returns | $1,258 | Accounts Receivable | $5,292 | Supplies Expenses | $355 |
Bonds Payable | $38,000 | Accumulated Depreciation | $17,250 | Income Tax Expense | $780 |
Equipment | $29,300 | Interest Expense | $2,900 | Notes Payable | $11,000 |
Cost of Goods Sold | $18,344 | Current Portion of Bonds Payable | $6,200 | Current Portion of Mortgage Payable | $2,350 |
Product Sales (Gross) | $56,145 | Utilities Expense | $950 | Inventory | $12,500 |
Discount of Bonds Payable | $970 | Salaries Expense | $14,100 | Revenues from Software Licenses | $1,050 |
Buildings | $52,000 | Goodwill | $350 | Advertising Expenses | $5,340 |
Sales Expenses | $7,200 | Salaries Payable | $412 | Marketable Securities | $3,450 |
Accounts Payable | $5,340 | PrePaid Expenses | $750 | Deferred Revenues | $1,920 |
In addition, the company had common stock of $42,000 at the beginning of the year and issued an additional $3,500 during the year. The company also had retained earnings of $19,700 at the beginning of the year and declared dividends of $1,500 during the year.
Using the account information above develop a Balance Sheet and Income Statement, then answer the next seven questions. The list of accounts is complete so your balance sheet should balance if you have performed the work correctly.
Question #1: Calculate the Net Income After Interest and Taxes.
Question #2: Calculate the Total Amount of Current Assets.
Question #3: Calculate the Total Amount of Current Liabilities.
Question #4: Calculate the Total Assets.
Question #5: What is the total amount of the stockholders equity.
Question #6: What is the amount of Long-Term Liabilities
Question #7: What is the company's Return on Equity (ROE).
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