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 45 Inventories 60 Less accumulated depreciation 130 Receivables 85 Total current assets Total current liabilities Long term debt 400 Interest expense 35 Property, plant, and equipment 570 Total liabilities Net fixed assets Shareholders equity 130 Total assets Total liabilities and shareholders equity INCOME STATEMENT Net sales 800 Cost of goods sold 630 Selling, general, and administrative expenses 48 EBIT Debt due for repayment 35 Cash 25 Taxable income Taxes 25 Depreciation 22 Net income Prepare the balance sheet and income statement by rearranging the above items (Be sure to list the assets and liabilities in order of their liquidity Enter all amounts as positive values )

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Posted on Oct 02, 2024

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	45	Inventories	60
Less accumulated depreciation	130	Receivables	85
Total current assets		Total current liabilities
Long-term debt	400	Interest expense	35
Property, plant, and equipment	570	Total liabilities
Net fixed assets		Shareholders equity	130
Total assets		Total liabilities and shareholders equity

INCOME STATEMENT
Net sales	800
Cost of goods sold	630
Selling, general, and administrative expenses	48
EBIT
Debt due for repayment	35
Cash	25
Taxable income
Taxes	25
Depreciation	22
Net income

Prepare the balance sheet and income statement by rearranging the above items. (Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.)