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Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. BALANCE SHEET Payables 55 Inventories 70 135 Less accumulated depreciation 140 Receivables Total current assets Total current liabilities Long-term debt 450 nterest expense 45 Property, plant, and equipment 620 Total liabilities Net fixed assets 170 Shareholders' equity Total assets Total liabilities and shareholders' equity INCOME STATEMENT 900 Net sales Cost of goods sold 680 Selling, general, and administrative expenses 58 EBIT Debt due for repayment 45 Cash 35 Taxable income Taxes 35 Depreciation 32 Net income
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