Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Balance Sheet Liabilities Current Assets Cash Accounts receivable Inventory Prepaid expenses

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Balance Sheet Liabilities Current Assets Cash Accounts receivable Inventory Prepaid expenses Capital Assets Plant and equipment (gross) Less: Accumulated amortization $15,100 15,000 30,900 15,000 Accounts payable Notes payable Bonds payable $15,700 24,800 52,600 $253,000 54,000 Shareholders' Equity Common stock Retained earnings $75,000 106, 90e Net plant and equipment 199,000 Total assets $275,000 Total liabilities and shareholders' equity $275,000 Sales for 20XY were $293,000, with cost of goods sold being 63 percent of sales Amortization expense was 14 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 12 percent, while interest on the notes payable was 15 percent. These are based on December 31, 20XX balances Selling and administrative expenses were $27400 and the tax rate averned 18 nercent ek my WOIR Sales for ZOXY were $293,000, with cost of goods SOI Deing b3 percent of sales. Amoruzation expense was 14 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 12 percent, while interest on the notes payable was 15 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $27,400, and the tax rate averaged 18 percent During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 15 percent, and accounts payable increased by 28 percent. A new machine was purchased on December 31, 2oxy, at a cost of $42,000. A cash dividend of $11,000 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $2,902 and bonds payable decreased by 10,630. The common stock account did not change a. Prepare an income statement for 20XY. (Input all answers as positive values.) 10 Gardner Corporation Income Statement For the Year Ending December 31, 20xY Sales 298000 FLO b. Prepare a balance sheet as of December 31, 20XY. (Input all answers as positive val liabilities in order of their liquidity.) Gardner Corporation Balance Sheet 7 c. Prepare a statement of cash flows for the year ending December 31, 20XY. (Record the change in operating activity of Cash flow. Do not leave any empty spaces; input a 0 wherever it is required. should be indicated with a minus sign. Omit $ sign in your response.) Gardner Corporation Statement of Cash Flows For the Year Ended December 31, 20xY Onerating Activitiae

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Public Relations Global Strategic Communication

Authors: Ralph Tench, Liz Yeomans

4th Edition

1292112182, 9781292112183

More Books

Students also viewed these Accounting questions

Question

understand gender differences with regard to work-related outcomes;

Answered: 1 week ago