Magic GMBA 4 Corporation ??

Income Statements For the Years Ended December 31, 2020

2020 $ Operating revenues- Note 1 2,092,800

Less: Cost of goods sold 968,000

Gross Profit 1,124,800

Operating expenses Selling and administrative expenses 368,000

Depreciation expense 80,000

Other expense 160,000

Bad debt expense 8,000

Rent expense 160,000

Operating expenses 776,000

Net income from operations 348,800

Inventory loss -80,000

Interest expense -71,472

Income before tax 197,328

Income tax expense -80,000

Net income 117,328

Note 1: Operating revenue includes $84,600 gain on disposal of plant assets and other similar items.

Magic GMBA 4 Corporation ??

Balance Sheets December 31, 2020

ASSETS 2020 $

Cash 227,760

Accounts receivable 720,000

Less: Allowance for bad debts -9,600

Inventory 880,000

Total current assets 1,818,160

Long term investment 191,200

Property, plant, and equipment 1,504,000

Less: Accumulated depreciation -304,000

Goodwill 240,000

Total assets 3,449,360

LIABILITIES AND SHAREHOLDERS EQUITY

Liabilities Accounts payable 256,000

Accrued payables 224,000

Unearned revenues 0

Total current liabilities 480,000

Other long term liability - pension 117,424

Bonds payable 800,000

Less: Discount on bonds payable -77,888

Deferred income tax 50,480

Total Liabilities 1,370,016

Shareholders equity Preferred stock 800,000

Common stock 80,000

Additional paid-in capital 960,000

Retained earnings 527,344

Less: Treasury stock -288,000

Total shareholders equity 2,079,344

Total liabilities and shareholders equity 3,449,360

1- Complete the income statement for the year 2020.

2- Complete the balance sheet for the year 2020.

3- Prepare a cash flows statement for the operating activities for the year 2020.

4- Compute ratios that can be calculated from the data presented (2 years, trend, percentages etc.)