Reviewing basic financial statements$$The income statement for the year ended December$31,2015,$ the balance sheets for December$31,2015$ and$2014,$ and the statement of retained earnings for the year ended December$31,2015,$ for$$ Technica, Inc., are given here LOADING.... Briefly discuss the form and informational content of each of these statements. Diga si es verdadero o falso Technica, Inc. Income Statement for the Year Ended

December $31,2015$

Sales revenue $$599,700$

Less: Cost of goods sold $459,700$

Gross profits $$140,000$

Less: Operating expenses

General and administrative expenses $$29,600$

Depreciation expense $29,600$

Total operating expense $59,200$

Operating profits $$80,800$

Less: Interest expense $9,900$

Net profits before taxes $$70,900$

Less: Taxes $26,800$

Earnings available for common stockholders $$44,100$

Earnings per share $($EPS$)$ $$2\mathrm{.}26$ Technica, Inc. Balance Sheets

December $31$

Assets $20152014$

Cash $$15,400$ $$15,800$

Marketable securities $7,0008,000$

Accounts receivable $33,90042,500$

Inventories $82,00050,400$

Total current assets $$138,300$ $$116,700$

Land and buildings $$150,400$ $$150,400$

Machinery and equipment $200,200189,600$

Furniture and fixtures $54,00049,700$

Other $10,80010,100$

Total gross fixed assets $$415,400$ $$399,800$

Less: Accumulated depreciation $144,700114,900$

Net fixed assets $$270,700$ $$284,900$

Total assets $$409,000$ $$401,600$

Liabilities and Stockholders' Equity

Accounts payable $$57,300$ $$48,500$

Notes payable $13,20016,100$

Accruals $4,8005,800$

Total current liabilities $$75,300$ $$70,400$

Long$-$term debt $$149,600$ $$160,600$

Stockholders' equity

Common stock equity $($shares outstanding:

$19,000$ in $2015$ and $19,500$ in $2014)$ $$109,600$ $$120,100$

Retained earnings $74,50050,500$

Total stockholders' equity $$184,100$ $$170,600$

Total liabilities and stockholders' equity $$409,000$ $$401,600$ Technica, Inc. Statement of Retained Earnings for the

Year Ended December $31,2015$

Retained earnings balance $($January $1,2015)$ $$50,500$

Plus: Net profits after taxes $($for $2015)44,100$

Less: Cash dividends $($paid during $2015)20,100$

Retained earnings balance $($December $31,2015)$ $$74,500$ After reviewing the income statement we can say the$$ following:

In this$$ one$-$year summary of the$$ firm's operations,$$ Technica, Inc. showed a net profit for $2015$ and the ability to pay cash dividends to its stockholders.$$

True

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $2$

$$Technica$,$ Inc.$\text{'}$s gross profits margin for the year was about $33\%.$

True

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $3$

After reviewing the balance sheet we can say the$$ following:

$$Technica$,$ Inc. has an excess of current assets over current$$ liabilities, demonstrating liquidity.$$

True

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $4$

The$$ firm's fixed assets represent over$$ one$-$half of total assets in $2015($$ $270$ comma $700$ of $ $409$ comma $000).$

True

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $5$

The firm is financed by$$ short$-$term debt,$$ long$-$term debt, common$$ stock, and retained earnings.$$

True

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $6$

It appears that the firm repurchased $500$ shares of common stock in $2015.$

False

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $7$

After reviewing the statement of retained earnings we can say the$$ following:

$$Technica$,$ Inc. earned a net profit of $ $44$ comma $100$ in $2015$ and paid out $ $20$ comma $100$ in cash dividends.$$

False

True

False

$.($Select from the$$ drop$-$down menu.$)$

Part $8$

The reconciliation of the retained earnings account from $ $50$ comma $500$ to $ $74$ comma $500$ shows the net amount $($$ $24$ comma $000)$ retained by the firm.$$

True

True

False

$.($Select from the$$ drop$-$down menu.$)$