Administration due to security concerns; however, it might once again be available online. It is good to Financial and Managerial Accounting: Information for Decisions, El E ITN 9-5 Review the chapter's opening feature about Tim Westergren and the business he founded, Pandora. Assume that he is considering expanding the business to Europe and that the current abbrevi- 3. Assume sales in Europe are $400,000. Prepare an income statement with columns for current opera- tions, European, and total) for the company and compute times interest earned 4. Assume sales in Europe are $100,000. Prepare an income statement (with columns for current opera- tions, European, and total) for the company and compute times interest earned. 5. Comment on your results from parts I through 4. BTN 9-6 Check the Social Security Administration website (SSA.RO) to locate the Social Security office wear you. Visit the office to request a personal earnings and estimate form. Fill out the form and mail according to the instructions. You will receive a statement from the Social Security Administration regard- w your earnings history and future Social Security benefits you can receive. (Formerly the request could be made online. The online service has been discontinued and is now under review by the Social Security Chapter 9 Accounting for Current Liabilities PANDORA Income Statement For Year Ended December 31 Sales $1,000,000 Operating expenses (55%) 550,000 Net Income $ 450,000 Assume also that the company currently has no interest-bearing debt. If it expands to Europe, it will re- quite a $300,000 loan. The company has found a bank that will loan it the money on a 7% note payable. The company believes that, at least for the first few years, sales in Europe will equal $250,000 and that all expenses at both locations will continue to equal 55% of sales. Required aled income statement appears as follows. 1. Prepare an income statement (showing three separate columns for current operations, European, and total) for the company assuming that it borrows the funds and expands to Europe. Annual revenues for 2. Compute the company's times interest earned under the expansion assumptions in part 1. Teaey ir matement every 5 to 10 years to make sure you have received credit war have paid taxes into the system