Part I.

• You have been provided check figures.
• In good form, prepare a multiple step income statement, statement of retained earnings, and classified balance sheet. Include Earnings Per Share on the Income Statement. You must use Excel.
• In Excel, use the Bottom Border function, not the Underline function. Also, use the Accounting format for cells, not Currency. However, do not show decimal places. Nobody is counting pennies. Refer to 211 regarding the placement of $, underlining and double underlining.
• Show Accumulated Depreciation and Allowance for Bad Debts (and other similar lines) on the appropriate financial statement (dont just show the net amount)

Check Figures: income from operations $299,600 net income $232,120; total assets $1,181,800; taxes payable $99,480.

Part II

• In good form, prepare common-size financial statements (balance sheet and income statement).
• You must use Excel. Duplicate the tab you have from Part I and add a column to the right of the original numbers.
• Dont change the Balance Sheet & Income Statement to one column, dont remove the indents, and dont remove the subheadings.
• Sales (not net sales) are 100% on the Income Statement. The Balance Sheet (Assets are 100%) is usually easier; start with it. When you are finished, you should add up all of the percentages (excluding subtotals) and they will equal 100% (assets if on the BS, sales if on the IS).
• If you are using Excel and you enter a formula and drag it down, keep in mind you have two columns of information. You may need to change the formula in certain cells to pick up the correct numerator. Carry your percentage out to at least one decimal place.
• The items you subtracted from Sales to arrive at NI should be positive percentages. Items you added in the income statement (excluding Sales) should be negative numbers (shown in parentheses).

Smith, Inc.

Adjusted Trial Balance

Description	Debit	Credit
Accounts receivable	304,000
Accumulated depreciation - buildings		175,000
Accumulated depreciation - vehicles		44,000
Allowance for bad debts		1,000
Buildings	406,000
Copyrights	130,000
Inventory	69,000
Land	98,000
Land held for speculation	170,000
Last National Bank Checking	51,000
Prepaid insurance	12,800
Supplies	8,000
Vehicles	153,000
Accounts payable		73,000
Bonds payable		400,000
Interest payable		59,000
Discount on bonds payable	83,800
Notes payable (due in 3 years)		113,000
Unearned rent		13,000
Additional paid in capital, common stock		72,000
Common stock ($10 par)		160,000
Dividends paid	85,000
Retained earnings, Janaury 1		164,000
Treasury stock	35,000
Rent revenue		84,000
Sales		1,711,600
Sales discounts	103,000
Advertising expense	73,000
Commissions paid	123,000
Cost of goods sold expense	472,000
Depreciation expense	72,000
Insurance expense	9,000
Interest expense	11,000
Loss on sale of equipment	41,000
Salaries expense	492,000
Sales entertainment expense	46,800
Supplies used	21,200
Totals	3,069,600	3,069,600