Question 1 Reference:
2. Follow Table 8.2 on page 181 to develop an end of year Income Statement for OU Engineering Foundations, using the following data. The organization has retained earnings of $1,500,000 from the previous end of the year. Gross sales for the year were $5,000,000 with refunds of $200,000 and refunds of $50,000. Interest and income from off-site investments were $150,000. Loan payments were $250,000. Taxes are as in Problem 1, above. The cost of goods sold is $2,500,000. Depreciation on equipment is $250,000. Sales bonuses and expenses are $150,000. Administration costs are $500,000. The board of directors voted for a $3.00 per share dividend for the 250,000 shares. 1. Follow Table 8.1 on page 180 to determine a balance sheet for OU Engineering Foundations, using the following data. The organization has little debt of $850,000. The current balance of accounts payable is $250,000. Federal taxes owed are $120,000. State taxes owed are $80,000. City taxes owed are $50,000. Unemployment taxes owed are $25,000. Real property taxes owed are $25,000. The board of directors demands to have 90 days cash on hand, which is $250,000 Securities held are $320,000. Accounts receivable are $230,000. The organization has a positive balance with suppliers of $5,000. Recent inventory indicates finished goods value to be $700,000; work in progress is $300,000; and raw materials are $50,000. The property is valued at $3,100,000. Depreciation/depletion of plant and equipment is $2,250,000. 2. Follow Table 8.2 on page 181 to develop an end of year Income Statement for OU Engineering Foundations, using the following data. The organization has retained earnings of $1,500,000 from the previous end of the year. Gross sales for the year were $5,000,000 with refunds of $200,000 and refunds of $50,000. Interest and income from off-site investments were $150,000. Loan payments were $250,000. Taxes are as in Problem 1, above. The cost of goods sold is $2,500,000. Depreciation on equipment is $250,000. Sales bonuses and expenses are $150,000. Administration costs are $500,000. The board of directors voted for a $3.00 per share dividend for the 250,000 shares. 1. Follow Table 8.1 on page 180 to determine a balance sheet for OU Engineering Foundations, using the following data. The organization has little debt of $850,000. The current balance of accounts payable is $250,000. Federal taxes owed are $120,000. State taxes owed are $80,000. City taxes owed are $50,000. Unemployment taxes owed are $25,000. Real property taxes owed are $25,000. The board of directors demands to have 90 days cash on hand, which is $250,000 Securities held are $320,000. Accounts receivable are $230,000. The organization has a positive balance with suppliers of $5,000. Recent inventory indicates finished goods value to be $700,000; work in progress is $300,000; and raw materials are $50,000. The property is valued at $3,100,000. Depreciation/depletion of plant and equipment is $2,250,000
