Reporting Amounts on the Four Basic Financial Statements and Evaluating Financial Statements [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.) The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc. $ 45,000 22,800 103,500 102,800 180, 500 Accounts Payable Accounts Receivable Cash (balance on January 1, 2016) Cash (balance on December 31, 2016) Common Stock Dividends Equipment Income Tax Expense Interest Expense Inventory Notes Payable Prepaid Rent office Expense Retained Earnings (beginning) Salaries and Wages Expense Service Revenue Utilities Expense Salaries and Wages Payable 136, 700 10,100 29,500 17,200 23,600 7,000 14,300 6,300 35, 700 137,800 25, 100 8,000 Other cash flow information: Cash from issuing common stock Cash paid to reacquire common stock Cash paid for income taxes Cash paid to purchase long-term assets Cash paid to suppliers and employees Cash received from customers $ 21,000 23,500 11,000 41,000 83,200 137,000 1. Prepare an income statement for 2016. NICE BITE, INC. Income Statement For the Year Ended December 31, 2016 Revenues Service Revenue $ 137,800 137,800 Total Revenues Expenses Income Tax Expense Interest Expense Office Expense 10,100 29,500 14,300 Salaries and Wages Expense Utilities Expense Total Expenses Net Income 35,700 25,100 114,700 23,100 $ 2. Prepare a statement of retained earnings for 2016. NICE BITE, INC. Statement of Retained Earnings For the Year Ended December 31, 2016 Retained Earnings, January 1, 2016 $ Add: Net Income Retained Earnings, December 31, 2016 $ 0 23,100 23,100 3. Prepare a balance sheet for 2016. NICE BITE, INC. Balance Sheet At December 31, 2016 Assets Accounts Receivable Cash Equipment Inventory Prepaid Rent $ 22,800 102,800 136,700 17,200 7,000 286,500 Total Assets Liabilities Accounts Payable Notes Payable Salaries and Wages Payable $ 45,000 23,600 8,000 Total Liabilities 76,600 Stockholders' Equity Common Stock Retained Earnings 180,500 29,400 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 209,900 286,500 $ 3. Prepare a balance sheet for 2016. NICE BITE, INC. Balance Sheet At December 31, 2016 Assets Accounts Receivable Cash Equipment Inventory Prepaid Rent $ 22,800 102,800 136,700 17,200 7,000 286,500 Total Assets Liabilities Accounts Payable Notes Payable Salaries and Wages Payable $ 45,000 23,600 8,000 Total Liabilities 76,600 Stockholders' Equity Common Stock Retained Earnings 180,500 29,400 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 209,900 286,500 $ PA1-4 Part 1 Required: 1-a. What amount of total assets have been financed by the creditors and by the stockholders? 76,600 Financed by Creditors Financed by Stockholders $ $ 209,900 1-b. Did Nice Bite rely more on creditors or stockholders for its financing at December 31, 2016? O Creditors Stockholders 1-c. What is your information source? Income Statement O Statement of Retained Earnings Balance Sheet Statement of Cash Flows G2
