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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 Corporation. Unfortunately, although the
Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. 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. Payables Less accumulated depreciation Total current assets Long-term debt Property, plant, and equipment Net fixed assets Total assets INCOME STATEMENT Taxable income Federal plus other taxes Depreciation Net income BALANCE SHEET $35 Inventories 120 Receivables $ 350 520 Total current liabilities Interest expense Total liabilities Net sales Cost of goods sold Selling, general, and administrative expenses EBIT Debt due for repayment Cash Shareholders' equity Total liabilities and shareholders' equity $ 700 580 38 $25 15 $15 12 $ 50 35 BALANCE SHEET $ 25 $ 90 Prepare the balance sheet and income statement by rearranging the above items. Note: Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.
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