HW#2:Income Statement and Balance Sheet Preparatio

1) Given the following financial information for 2014 and 2015, construct an Income Statement and Balance Sheet for Grand Twins for each year.

- The Income Statement information is for the entire year.

- The Balance Sheet information is for December 31 of each year.

20142015

Accounts Payable$2,065,168$3,732,362

Accounts Receivable47,677,90453,413,866

Cash5,786,9431,260,691

Common Stock27,280,00027,280,000

Cost of Goods Sold45,014,34850,298,751

Depreciation Expense975,000975,000

Dividends1,200,0001,200,000

Interest Expense90,430103,266

Inventory8,399,1338,989,075

Long-Term Debt0 0

Notes Payable0?

Other Current Liabilities5,209,3564,320,784

Net Property, Plant & Equip.9,295,97611,608,208

Retained Earnings??

Revenue56,611,36756,775,078

Selling, General, & Admin.6,165,1534,742,619

Total Assets??

Tax Rate = 20%

4) What should be my assessment of GTI's financial performance for 2015?

5) What clues to GTI's issues does the Balance Sheets provide?