Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet and income statement of Cookie & Coffee Creations Inc, for its first year of operations, the year ended October 31 , 2021,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The balance sheet and income statement of Cookie \& Coffee Creations Inc, for its first year of operations, the year ended October 31 , 2021, follows. Accumulated depreciation-computer equipment Kitchen equipment \begin{tabular}{rrr} \multicolumn{1}{c}{3600)} & \\ \hline 29,000 & & \\ \hline(2,050) & 26,950 & 41,800 \\ \hline & $155,466 \\ \hline \end{tabular} Accumulated depreciation-kitchen equipment Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income tax payable Dividends payable $5,848 19,690 Salaries and wages payable 700 Interest payable Note payable-current portion Lons-termliabilities Note payable-long-term portion Total liabilities Total liabilities 38,676 Stockholders' equity Paid-in capital Preferred stock, 2,800 shares issued and outstanding Common stock, 25,930 shares issued, 25,180 outstanding Retained earnings Total paid-in capital and retained earnings COOKEE 8 COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2021 Sales revenue $462,500 Year ended Uctober 31, 2021 Sales revenue Cost of goods sold Gross profit $462,500 Operating expenses Salaries and wages expense $92,500 Depreciation expense 3,900 Other expenses \begin{tabular}{lr} Interest expense & 413 \\ \cline { 2 - 2 } Income before income tax & 98,450 \\ Income tax expense & 19.690 \\ Net income & $78,760 \\ \hline \end{tabular} Additional information: Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semiannual installment payments of $2.500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. 9. Return on assets 50.66% 10. Return on common stockholders' equity %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting

Authors: Stacey M. Whitecotton, Robert Libby, Fred Phillips

5th Edition

1265117896, 9781265117894

More Books

Students also viewed these Accounting questions

Question

7 How can a culture encourage ethical (or unethical) behaviour?

Answered: 1 week ago