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Income Statement year ending 2 0 1 6 Sales Revenues $ 5 0 0 , 0 0 0 Cost of goods sold 3 5 5

Income Statement year ending 2016
Sales Revenues $500,000
Cost of goods sold 355,000
Fixed costs 58,000
Selling, general, and administrative expenses 25,334
Depreciation 20,000
EBIT
Interest expense 0
Taxable Income
Taxes
Net Income 25,000
*** Tax rate 40%
Dividens paid 5,000
Partial Balance Sheet 12/31/2015
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash 15,000 Notes payable 10,000
Accounts receivable 35,000 Accounts payable 17,000
Inventories 25,000 Total current liabilities
Total current assets Long-term debt 118,000
Total Liabilities
Gross Fixed assets OWNERS' EQUITY
Accumulated depreciation 100,000 Retained earnings (1)70,000
Net Fixed assets Common stock 200,000
Intangible assets 0 Total owner's equity
TOTAL ASSETS TOTAL LIABILITIES & OWNER'S EQUITY
(1) These are cumulative retained earnings but textbook simply calls it retained earnings
Partial Balance Sheet 12/31/2016
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash 2,000 Notes payable 20,000
Accounts receivable 20,000 Accounts payable 20,000
Inventories 28,000 Total current liabilities
Total current assets Long-term debt
Gross Fixed assets Total liabilities 60,000
Accumulated depreciation OWNERS' EQUITY
Net Fixed Assets Retained earnings
Intangible assets 0 Common stock 200,000
Total long-term assets Total owner's equity
TOTAL ASSETS TOTAL LIABILITIES & OWNER'S EQUITY 1. What is the EBIT in 2016?
2. What is amount for Total Liabilities & Owner's Equity for 2015?
3. What is the change in Retained Earnings from 2015 to 2016?
4. What is the amount for Retained Earnings in the Balance Sheet in 2016?
5. What is the amount for Net Fixed Assets in the Balance Sheet in 2015?
6. What is the amount for Total Owner's Equity in the Balance Sheet for 2016?
7. What is the amount for Long-Term debt in the Balance Sheet in 2016?

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