Question
Below is the balance sheet and income statement information for Downtown Boutique, Inc. Assume the firm pays an average tax rate of 21% and did
Below is the balance sheet and income statement information for Downtown Boutique, Inc. Assume the firm pays an average tax rate of 21% and did not issue or repurchase any common stock in 2018. Complete the income statement to find net income. Then calculate additions to retained earnings for 2018 (you will need to find the three missing values in the balance sheets first).
Downtown Boutique | Downtown Boutique | ||||
Balance Sheet | 2018 Income Statement | ||||
2017 | 2018 |
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Assets | |||||
Current Assets | Sales Revenue | 21,000 | |||
Cash | 400 | 450 | Cost of Goods Sold | 8,500 | |
Accounts Receivable | 850 | 1200 | Depreciation | 2075 | |
Inventory | 1250 | 1100 | Earnings Before Interest and Taxes | 10,425 | |
Total | 2500 | 2750 | Interest Expense | 1,200 | |
Fixed Assets |
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Net Fixed Assets | 3500 | 3850 |
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Total Assets | 6000 | 6600 |
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Liabilities and Owner's Equity | |||||
Current Liabilities | |||||
Accounts Payable | 600 | 725 | |||
Notes Payable | 450 | 350 | |||
Total | 1050 | 1075 | |||
Long-term Debt | 1850 | 2125 | |||
Owner's Equity | |||||
Common Stock | 2700 |
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Retained Earnings |
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