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Problem 19-1 Use the financial statements of Heifer Sports Inc. to find the information below for Heifer. (Use 365 days a year. Round all answers
Problem 19-1
Use the financial statements of Heifer Sports Inc. to find the information below for Heifer. (Use 365 days a year. Round all answers to 2 decimal places except $ amounts.)
Income Statement | 2017 | ||
Sales | $ | 5,770,000 | |
Cost of goods sold | 3,055,000 | ||
Depreciation | 303,500 | ||
Selling & admin. expenses | 1,625,000 | ||
EBIT | $ | 786,500 | |
Interest expense | 176,000 | ||
Taxable income | $ | 610,500 | |
Taxes | 278,500 | ||
Net income | $ | 332,000 | |
Balance Sheet, Year-End | 2017 | 2016 | |||||
Assets | |||||||
Cash | $ | 40,500 | $ | 98,000 | |||
Accounts receivable | 586,000 | 1,700,200 | |||||
Inventory | 435,100 | 1,182,700 | |||||
Total current assets | $ | 1,061,600 | $ | 2,980,900 | |||
Fixed assets | 2,805,000 | 6,990,000 | |||||
Total assets | $ | 3,866,600 | $ | 9,970,900 | |||
Liabilities and Stockholders' Equity | |||||||
Accounts payable | $ | 311,200 | $ | 1,218,000 | |||
Short-term debt | 506,000 | 1,497,300 | |||||
Total current liabilities | $ | 817,200 | $ | 2,715,300 | |||
Long-term bonds | 1,706,300 | 5,984,500 | |||||
Total liabilities | $ | 2,523,500 | $ | 8,699,800 | |||
Common stock | $ | 314,300 | $ | 314,300 | |||
Retained earnings | 1,028,800 | 956,800 | |||||
Total stockholders' equity | $ | 1,343,100 | $ | 1,271,100 | |||
Total liabilities and stockholders' equity | $ | 3,866,600 | $ | 9,970,900 | |||
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