Question
Use the following information to create the financial statements in questions 1-3. Unless otherwise specified, the data given are for the fiscal year 2019 as
Use the following information to create the financial statements in questions 1-3. Unless otherwise specified, the data given are for the fiscal year 2019 as of Dec. 31. Credit will not be given unless complete financial statements are submitted.
Sales revenue: $8,000 | Accounts Receivable Dec. 31, 2019: $150 |
Tax rate: 25% | Accounts Payable Dec. 31, 2019: $175 |
Interest expense: $70 | Inventory Dec. 31, 2019: $800 |
SGA Expenses: $1,300 | Total Expenses: $5,200 |
Other Revenue: $2,000 | Accrued Liabilities: $550 |
R&D Expense: $500 | Long-Term Debt: $700 |
Cash on Dec. 31, 2018: $900 | Long-Term Debt Currently Due: $50 |
Accounts Receivable Dec. 31, 2018: $300 | Common Stock: $5,300 |
Accounts Payable Dec. 31, 2018: $750 | Property Plant and Equipment: $1,750 |
Inventory Dec. 31, 2018: $200 | Patents: $475 |
Cost of Goods Sold: ______ | Retained Earnings: ______ |
1. Create an income statement for the year ended Dec. 31, 2019. To complete the income statement you will need to calculate total revenue, cost of goods sold, pretax income, income tax expense, and net income.
2. Create a statement of cash flows for the year ended Dec. 31, 2019. Remember that changes in certain balance sheet items over the year will affect the cash flow statement.
3. Create a balance sheet for Dec. 31, 2019. You will need to use the accounting equation to calculate retained earnings
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