Question 5 (15 points) Balance sheet. Use the data from the financial statements of a company shown below. Use it to answer the 7 questions that follow it. When answering the questions (filling in the blanks), DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Round to the nearest dollar. Income Statement year ending 2016 Sales Revenues Cost of goods sold Fixed costs Selling, general, and administrative expenses Depreciation EBIT Interest expense Taxable Income Taxes Net Income $100,000 50,000 12,000 14,667 10,000 13,333 10,000 *** Tax rate Dividens paid 25% 2,000 ASSETS Current Assets Cash 1,000 7,000 Accounts receivable Inventories Total current assets Partial Balance Sheet 12/31/2015 LIABILITIES Current Liabilities 1,000 Notes payable Accounts payable 5,000 Total current liabilities Long-term debt Total Liabilities 155,000 OWNERS' EQUITY 20,000 Retained earnings (1) Common stock 0 Total owner's equity Gross Fixed assets Accumulated depreciation Net Fixed assets Intangible assets 20,000 70,000 TOTAL ASSETS $150,000 TOTAL LIABILITIES & OWNER'S EQUITY $150,000 (1) These are cumulative retained earnings but textbook simply calls it retained earnings Partial Balance Sheet 12/31/2016 LIABILITIES ASSETS Current Assets Current Liabilities 3,000 Notes payable Cash Accounts payable 8,000 10,000 Accounts receivable Inventories Total current assets Gross Fixed assets Accumulated depreciation Net Fixed Assets Intangible assets 10,000 Total current liabilities 20,000 Long-term debt Total liabilities OWNERS' EQUITY 150,000 Retained earnings 0 Common stock 150,000 Total owner's equity TOTAL LIABILITIES & OWNER'S EQUITY 70,000 Total long-term assets TOTAL ASSETS DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Round to the nearest dollar. 1. What is the amount for Total Assets in 2016? A 2. What is amount for Total Liabilities & Owner's Equity for 2016? 3. What is the change in retained earnings from 2015 to 2016? A 4. What is the amount for Retained Earnings in the Balance Sheet in 2016? A 5. What is the amount for Gross Fixed assets in the Balance Sheet in 2016? 6. What is the amount for Total Owner's Equity in the Balance Sheet for 2016? 7. What is the amount for Long-Term debt in the Balance Sheet in 2016
