Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Creating Balance Sheets and Income Statements Using the information in the below table, prepare a classified balance sheet for Arrow Company as of December 31,
Creating Balance Sheets and Income Statements Using the information in the below table, prepare a classified balance sheet for Arrow Company as of December 31, 2014 and December 31, 2015, along with multi-step income statements for the years then ended.
Account | December 31, 2014 | December 31, 2015 | |
---|---|---|---|
Property, plant, and equipment (net) | $650 | $735 | |
Long-term debt | 490 | 690 | |
Depreciation expense | 50 | 60 | |
Retained earnings | 130 | 295 | |
Sales revenue | 1,000 | 1,500 | |
Income taxes | 50 | 70 | |
Current portion of long-term debt | 50 | 70 | |
Total current liabilities | 130 | 160 | |
Inventory | 125 | 300 | |
Cost of goods sold | 600 | 900 | |
Cash | 100 | 140 | |
Selling, general, and administrative expenses | 175 | 290 | |
Other current assets | 40 | 40 | |
Accounts receivable | 135 | 230 | |
Interest expense | 25 | 50 | |
Dividends | 20 | 25 | |
Accounts payable | 80 | 90 | |
Common stock | 300 | 300 |
Arrow Company | |||
---|---|---|---|
Balance Sheet | |||
As of December 31, 2015 | |||
2015 | 2014 | ||
Cash | $
| $
| |
Accounts Receivable |
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Other current assets |
|
| |
Total current assets |
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Total assets | $
| $
| |
Accounts payable | $
| $
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Total current liabilities |
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Total liabilities |
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Retained earnings |
|
| |
Total equity |
|
| |
Total liabilities and equity | $
| $
|
Arrow Company | |||
---|---|---|---|
Income Statement | |||
For the year ended December 31, 2015 | |||
2015 | 2014 | ||
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
| $
| $
| |
Cost of goods sold |
|
| |
Gross profit |
|
| |
Selling, general, & administrative expenses |
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Pretax income |
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
| |
Common stockCurrent portion of long-term debtDepreciation expenseDividendsIncome taxesInterest expenseInventoryLong-term debtNet incomeOperating incomeProperty, plant and equipmentSales
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started