Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement is fairly straightforward but I need assistance with the balance sheet and statement of cash flows FSA - Assignm spring 17 The
The income statement is fairly straightforward but I need assistance with the balance sheet and statement of cash flows
FSA - Assignm spring 17 The balance sheet of DCC Corp., as of the end of Quarter 2, is provided below BS Assets Liab. & Owners Equit $500 Cash A/R Inventory parts S11,300 Accounts payable $1,000 $8,000 $4,000 Long-term debt Common Stock ($2 par value) Paid-in-surplus Retained Earnings S600 S6,000 finished goods $5,000 $1,400 Total Assets $18,900 Liab. & Owners Equity $18,900 During Quarter 3 DCC purchased S3000 worth of parts, $1400 with cash, the remainder to be paid in Quarter 4. Sold 6 computers, each for $750 4 were sold for cash, 2 were sold on credit with payment to be received in Quarter 4 The gross margin was 36% Annual interest rate on LTD was 3.2%. Interest is paid and expensed quarterly SG&A expenses = $600 was paid in Quarter 3 The tax rate is 35% and Quarter 3 taxes will be paid in Quarter 4 The dividend payout ratio (dividends/Net Income) is 30% (paid immediately) 200 new shares of common stock were issued and sold for $1200 in Quarter 3 Purchased the warehouse DCC is located in for $20,000 cash on the first day of Quarter 3 $12,000 long-term debt was issued on the first day of the quarter The warehouse will be depreciated over 20 years. Depreciation is expensed quarterly Create the Q3 income statement and the Q3 ending balance sheet. Create a SCF for Quarter 3. Round up the numbers no decimal points Your report should present the lS, BS and SCF and should be on ONE page You have to use Excel to complete the assignment. Hand written work is unacceptableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started