Problem 2-25 Financial Statements [LO1]

Use the following information for Taco Swell, Inc., (assume the tax rate is 30 percent):

	2014			2015
Sales	$	14,573		$	14,736
Depreciation		1,721			1,796
Cost of goods sold		4,279			4,767
Other expenses		976			854
Interest		825			956
Cash		6,157			6,646
Accounts receivable		8,100			9,607
Short-term notes payable		1,230			1,207
Long-term debt		20,500			24,786
Net fixed assets		51,020			54,453
Accounts payable		4,480			4,824
Inventory		14,385			15,348
Dividends		1,250			1,678

Prepare a balance sheet of this company for 2014 and 2015.

TACO SWELL, INC. Balance Sheet as of Dec. 31

2014

2015

Assets

(Click to select)Accounts payableInventoryNotes payableAccounts receivableCash

$

$

(Click to select)Owners' equityLong-term debtNotes payableAccounts payableAccounts receivable

(Click to select)InventoryAccounts receivableNotes receivableNet fixed assetsAccounts payable

Current assets

$

$

(Click to select)Accounts payableNet fixed assetsLong-term debtAccounts receivableNotes receivable

Total assets

$

$

Liabilities

(Click to select)Accounts payableLong-term debtCost of goods soldNet fixed aseetsAccounts receivable

$

$

(Click to select)Notes receivableAccounts receivableCashNotes payableAccounts payable

Current liabilities

$

$

(Click to select)Cost of goods soldLong-term debtAccounts receivableCashOwners' equity

(Click to select)Notes receivableCashAccounts receivableCost of goods soldOwners' equity

Total liabilities & owners' equity

$

$

TACO SWELL, INC. Income Statement
	2014		2015
Sales	$		$
COGS
Other expenses
Depreciation
EBIT	$		$
Interest
EBT	$		$
Taxes (30%)
Net income	$		$
Dividends	$		$
Additions to RE