Question 8. in the attached PDF file is concerning me. I can not seem to figure out how to calculatea. Current assets b. Net fixed assets c. Total assets d. Current liabilities e. Total liabilities f. Total liabilities and shareholders' equity g. EBIT h. Taxable income i. Net income. I believe I need to decided if each item is an asset or liability first but I'm not sure. Could you please help with this question?

-Bradley

IEB Wireframe Page 6 of 19 8. Financial Statements. Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. Help him by rearranging the items and filling in the blanks. (LO3-1) BALANCE SHEET Payables Less accumulated depreciation Total current assets 35Inventories 50 120Receivables 35 Total current liabilities Long-term debt 350Interest expense Property, plant, and equipment 520Total liabilities 25 Net fixed assets Shareholders' equity 90 Total assets Total liabilities and shareholders' equity INCOME STATEMENT Net sales 700 Cost of goods sold 580 Selling, general, and administrative expenses EBIT Debt due for repayment http://textflow.mheducation.com/parser.php?secload=3.f&fake&print 38 25 7/16/2016 IEB Wireframe Page 7 of 19 Cash Taxable income 15 Taxes 15 Depreciation 12 Net income What is the correct total for the following? a. Current assets b. Net fixed assets c. Total assets d. Current liabilities e. Total liabilities f. Total liabilities and shareholders' equity g. EBIT h. Taxable income i. Net income Page 77 9. Market versus Book Values. The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $200,000 in setting up a production plant. He believes that he could sell his patent for $50 million. (LO3-2) http://textflow.mheducation.com/parser.php?secload=3.f&fake&print 7/16/2016