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1. The following numbers are for Handyman Company for 2019.

Short-term loans payable

10

Long-term debt

207

Interest expense

9

Income tax expense

4

Paid-in Capital

50

Retained earnings (as of 1/1/19)

31

Cash

10

Receivables

27

Dividends

0

Sales

700

Accumulated depreciation

9

Accounts payable

74

Inventory

153

Property, plant & equipment

199

Cost of goods sold

519

Other operating expense

160

a) Create a balance sheet and an income statement for this company

b) Handyman is wondering what its balance sheet and income statement would have looked like if the following numbers were changed as indicated:

Change

From

To

Sales

700

825

Cost of goods sold

519

620

Other operating expenses

160

189

c) Create a second income statement and balance sheet with the numbers changed as indicated. After making these changes, your balance sheet may no longer balance. What actions would have been taken in order to eliminate this discrepancy by the Handyman?

1. The following numbers are for Handyman Company for 2019.

Short-term loans payable

10

Long-term debt

207

Interest expense

9

Income tax expense

4

Paid-in Capital

50

Retained earnings (as of 1/1/19)

31

Cash

10

Receivables

27

Dividends

0

Sales

700

Accumulated depreciation

9

Accounts payable

74

Inventory

153

Property, plant & equipment

199

Cost of goods sold

519

Other operating expense

160

a) Create a balance sheet and an income statement for this company

b) Handyman is wondering what its balance sheet and income statement would have looked like if the following numbers were changed as indicated:

Change

From

To

Sales

700

825

Cost of goods sold

519

620

Other operating expenses

160

189

c) Create a second income statement and balance sheet with the numbers changed as indicated. After making these changes, your balance sheet may no longer balance. What actions would have been taken in order to eliminate this discrepancy by the Handyman?