Washington Irving, Inc. Comparative Statements of Comprehensive Income 2 For the Year Ending January 31, 2018 2017 2016 4 $ 3,870,250.00 3,250,000.00 S (275,000.00) S (150,000.00) S 3,595,250.00 3,100,000.0o S (2,260,890.00) S(1,850,000.00) 5 Gross sales 6 Less: Sales returns (1) 7 Net sales 8 Cost of goods sold S 1,334,360.00 $ 1,250,000.00 9 Gross profit 10 Operating expenses: 11 Selling expenses $526,800.00 425,000.00 $ 382,500.00 S 279,800.00 $ 75,000.00 S 125,000.00 General and administrative expenses 12 13 Research and development expenses S60,000.00 S200,000.00 S 425,000.00 S 365,000.00 S60,872.40 S24,890.00 $ 1,555,062.40 S 1,394,800.00 S (220,702.40 $ (144,800.00) 14 Goodwill impairment 15 Depreciation expense 16 Amortization expense (leases) 17 Bad debts expense 18 Total operating expenses 19 Operating income 20 Other income (expense): S 159,800.00 126,500.00 $ (1,250.00) S 21 Interest and dividend revenue 22 Gain (loss) on sale of TS investments S (12,500.00) S 165,000.00 23 Gain (loss) on sale of property 24Unrealized holding gain (loss) on TS investments S 12,590.00 $ 18,750.00 25 Interest expense S (101,287.60) S (90,650.00) S57,352.40 219,600.00 26 Total other income lexpense), net 5 (163,350.00) S74,800.00 27 Income before income taxes (3,972.50) 26,180.00 28 Income tax expense (benefit) S(159,377,50 S 48,620.00 29 Net income 30 Other Comprehensive Income 5 (118,900.00) S (135,900.00) Defined benefit plans, net 31 S 32,500.00 S 78,650.00 Unrealized holding gain (loss) on AFS investments S(199,627.50)$(54,780.00 33 Comprehensive income (loss) 34 Washington Irving Inc. Statements of Equity For the Year Ending January 31, 2017 Accumulated Other Additional Paid-in Comprehensive Retained Earnings Common Stock Income 15,000.00 10,860,000.00 $ 5 Balance at January 31, 2016 6 Net income 48,620.00 7 Other comprehensive income (loss) $ (103,400.00) 5,240.00 8 Issuance of common stock 72.50 $ (175.00) (100450.00) 25,000.00 $ 9 Purchase of common stock 10 Stock-based compensation 11 Cash dividends declared on common st $ 1,750.00)$ 3,603.00 S (159,377.50)$ 14,897.50 10,829,790.00 (132,080.00) 12 Balance at January 31, 2017 13 Net income (40,250.00) 14 Other comprehensive income (loss) 15 Issuance of common stock 62,400.00 (10,600.00) S 25,000.00 100.00 $ (25.00) $ 16 Purchase of common stock 17 Stock-based compensation 18 Cash dividends declared on common sto$ (2,250.00) S 14,972.50 10,906,590.00 (172,330.00) 19 Balance at January 31, 2018 20 21 23 24 25 Assignment information Income Statement Changes in Fquity Notes to the FS Balance Sheet Workshe Note: The loss on sale of T $32,000 of interest revenue is nontaxable IS investments is for securities originally purchased for $40,000 and sold for $85,000 BV: 40,000.00 Proceeds: $85,000. Nontax Rev 32,000.00 Cash Sales$3,265,900.00 Cash sales were $3,265,900, the rest were sales on account The deferred tax liability is due to differences in tax to book depreciation methods Included in accounts payable are all relevant current liabilities payable, excepting income taxes payable No new long-term debt was issued during the year G&A includes pension expense of $85,410 Contributions to pension plan assets of $52,850 were made this year G&A expenses include $50,000 in RSUs payable in either equity or cash and $ $85,260 of the returns were for sales on account Pension Exp. 85,410.00 Contributions $52,850.00 Liab. 0,000.00 Equity $25,000.0 AR Returns $ 85,200.00 Leases have a four year lease term with one payment due immediately and then due at Feb 1 of each year thereafter Assume that the goodwill on the balance sheet is NEVER tax deductible and ignoreall other temporary differences Nontax Impair The loss on the sale of property is for PP&E which was sold for $289,500 60,000.00 PPE Proceeds 289,500.00 HOME NSERT PAGE LAYOUT FORULAS DATA REVIEw Washington Irving Inc. Comparative Balance Sheets As of January 31, 2018 to be deleted Assets Current Assets: S 754,535.50 S 469,037.50 $ 285,498.00 S 257,070.00 S 233,450.00 $ 23,620.00 Cash and cash equivalents Accounts receivable s 1,797,510.00 S 1,488,600.00 $ 308,910.00 S3,477.00 S S 311,700.00 S 339,200.00 S (27,500 S 995,090.00 S 1,068, 750.00 S (73,660.00) s 4,119,382 50 S 3,599,037.50 S 520, 345.00 $ 3,477.00 Income taxes receivable Notes receivable Total current assets Non-current Assets S12,193,000.00 $12,700,000.00 S(507,000.00) $205,420.97 Property, plant, and equipment (Net) $205,420.97 Right-of-use asset s 3,709,800.00 S 3,631,150.00S 78,650.00 S 2,300,000.00 S 2,360,000.00 S (60,000.00) 26,085.50 $18,434,306.47 $18,691,150.00 $(256,843.53) $22.553.688.97 $22.290,187.50 S 263,501.47 0 Goodwill and intangible assets 26,085.50 S Deferred income taxes Total non-current assets Total Assets Liabilities and Equity Current Liabilities: S 242,100.00$ 230,100.00 S 12,000.00 S 258,300.00 S 280,900.00 S (22,600.00) S3,477.00 S (3,477.00) 72,500.00 $ 256,900.00 S 829,800.00 S 514,477.00 S 315,323.00 Accounts payable Notes payable Income taxes payable 72,500.00 S Current lease payable S 256,900.00 Current maturity of long-term debt Total current liabilities Non-current Liabilities 4,574,310.00 4,861,100.00 S(286,790.00) $ 6,302,590.00 6,151,130.00 S151,460.00 S132,920.97$ Long-term debt (net) Pensions S 132,920.97 Leases Payable 51,860.00 47,270.00 4,590.00 50,000.00 S Deferred income taxes S50,000.00 Liability-RSU Plan 5 21,000.00 $11,132,680.97 $11,059,500.00 S 73,180.97 S 21,000.00 S Liability- Potential Additional Tax otal noncurrent liabilities Total Liabilities $11,962,480.97 $11,573,977.00 S 14,972.50 14,897.50 $10,906,590.00 $10,829,790.00 Common Stock, $0.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) 5 (172,330.00) S (132,080.00) s (158,024.50) S 3,603.00 $10,591,208.00 $10,716,210.50 Total Liabilities and Equity Assignment information Income Statement Changes in E READY Please use the information provided to complete: a direct method AND an indirect method statement of cash flows. - Washington Irving, Inc. Comparative Statements of Comprehensive Income 2 For the Year Ending January 31, 2018 2017 2016 4 $ 3,870,250.00 3,250,000.00 S (275,000.00) S (150,000.00) S 3,595,250.00 3,100,000.0o S (2,260,890.00) S(1,850,000.00) 5 Gross sales 6 Less: Sales returns (1) 7 Net sales 8 Cost of goods sold S 1,334,360.00 $ 1,250,000.00 9 Gross profit 10 Operating expenses: 11 Selling expenses $526,800.00 425,000.00 $ 382,500.00 S 279,800.00 $ 75,000.00 S 125,000.00 General and administrative expenses 12 13 Research and development expenses S60,000.00 S200,000.00 S 425,000.00 S 365,000.00 S60,872.40 S24,890.00 $ 1,555,062.40 S 1,394,800.00 S (220,702.40 $ (144,800.00) 14 Goodwill impairment 15 Depreciation expense 16 Amortization expense (leases) 17 Bad debts expense 18 Total operating expenses 19 Operating income 20 Other income (expense): S 159,800.00 126,500.00 $ (1,250.00) S 21 Interest and dividend revenue 22 Gain (loss) on sale of TS investments S (12,500.00) S 165,000.00 23 Gain (loss) on sale of property 24Unrealized holding gain (loss) on TS investments S 12,590.00 $ 18,750.00 25 Interest expense S (101,287.60) S (90,650.00) S57,352.40 219,600.00 26 Total other income lexpense), net 5 (163,350.00) S74,800.00 27 Income before income taxes (3,972.50) 26,180.00 28 Income tax expense (benefit) S(159,377,50 S 48,620.00 29 Net income 30 Other Comprehensive Income 5 (118,900.00) S (135,900.00) Defined benefit plans, net 31 S 32,500.00 S 78,650.00 Unrealized holding gain (loss) on AFS investments S(199,627.50)$(54,780.00 33 Comprehensive income (loss) 34 Washington Irving Inc. Statements of Equity For the Year Ending January 31, 2017 Accumulated Other Additional Paid-in Comprehensive Retained Earnings Common Stock Income 15,000.00 10,860,000.00 $ 5 Balance at January 31, 2016 6 Net income 48,620.00 7 Other comprehensive income (loss) $ (103,400.00) 5,240.00 8 Issuance of common stock 72.50 $ (175.00) (100450.00) 25,000.00 $ 9 Purchase of common stock 10 Stock-based compensation 11 Cash dividends declared on common st $ 1,750.00)$ 3,603.00 S (159,377.50)$ 14,897.50 10,829,790.00 (132,080.00) 12 Balance at January 31, 2017 13 Net income (40,250.00) 14 Other comprehensive income (loss) 15 Issuance of common stock 62,400.00 (10,600.00) S 25,000.00 100.00 $ (25.00) $ 16 Purchase of common stock 17 Stock-based compensation 18 Cash dividends declared on common sto$ (2,250.00) S 14,972.50 10,906,590.00 (172,330.00) 19 Balance at January 31, 2018 20 21 23 24 25 Assignment information Income Statement Changes in Fquity Notes to the FS Balance Sheet Workshe Note: The loss on sale of T $32,000 of interest revenue is nontaxable IS investments is for securities originally purchased for $40,000 and sold for $85,000 BV: 40,000.00 Proceeds: $85,000. Nontax Rev 32,000.00 Cash Sales$3,265,900.00 Cash sales were $3,265,900, the rest were sales on account The deferred tax liability is due to differences in tax to book depreciation methods Included in accounts payable are all relevant current liabilities payable, excepting income taxes payable No new long-term debt was issued during the year G&A includes pension expense of $85,410 Contributions to pension plan assets of $52,850 were made this year G&A expenses include $50,000 in RSUs payable in either equity or cash and $ $85,260 of the returns were for sales on account Pension Exp. 85,410.00 Contributions $52,850.00 Liab. 0,000.00 Equity $25,000.0 AR Returns $ 85,200.00 Leases have a four year lease term with one payment due immediately and then due at Feb 1 of each year thereafter Assume that the goodwill on the balance sheet is NEVER tax deductible and ignoreall other temporary differences Nontax Impair The loss on the sale of property is for PP&E which was sold for $289,500 60,000.00 PPE Proceeds 289,500.00 HOME NSERT PAGE LAYOUT FORULAS DATA REVIEw Washington Irving Inc. Comparative Balance Sheets As of January 31, 2018 to be deleted Assets Current Assets: S 754,535.50 S 469,037.50 $ 285,498.00 S 257,070.00 S 233,450.00 $ 23,620.00 Cash and cash equivalents Accounts receivable s 1,797,510.00 S 1,488,600.00 $ 308,910.00 S3,477.00 S S 311,700.00 S 339,200.00 S (27,500 S 995,090.00 S 1,068, 750.00 S (73,660.00) s 4,119,382 50 S 3,599,037.50 S 520, 345.00 $ 3,477.00 Income taxes receivable Notes receivable Total current assets Non-current Assets S12,193,000.00 $12,700,000.00 S(507,000.00) $205,420.97 Property, plant, and equipment (Net) $205,420.97 Right-of-use asset s 3,709,800.00 S 3,631,150.00S 78,650.00 S 2,300,000.00 S 2,360,000.00 S (60,000.00) 26,085.50 $18,434,306.47 $18,691,150.00 $(256,843.53) $22.553.688.97 $22.290,187.50 S 263,501.47 0 Goodwill and intangible assets 26,085.50 S Deferred income taxes Total non-current assets Total Assets Liabilities and Equity Current Liabilities: S 242,100.00$ 230,100.00 S 12,000.00 S 258,300.00 S 280,900.00 S (22,600.00) S3,477.00 S (3,477.00) 72,500.00 $ 256,900.00 S 829,800.00 S 514,477.00 S 315,323.00 Accounts payable Notes payable Income taxes payable 72,500.00 S Current lease payable S 256,900.00 Current maturity of long-term debt Total current liabilities Non-current Liabilities 4,574,310.00 4,861,100.00 S(286,790.00) $ 6,302,590.00 6,151,130.00 S151,460.00 S132,920.97$ Long-term debt (net) Pensions S 132,920.97 Leases Payable 51,860.00 47,270.00 4,590.00 50,000.00 S Deferred income taxes S50,000.00 Liability-RSU Plan 5 21,000.00 $11,132,680.97 $11,059,500.00 S 73,180.97 S 21,000.00 S Liability- Potential Additional Tax otal noncurrent liabilities Total Liabilities $11,962,480.97 $11,573,977.00 S 14,972.50 14,897.50 $10,906,590.00 $10,829,790.00 Common Stock, $0.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) 5 (172,330.00) S (132,080.00) s (158,024.50) S 3,603.00 $10,591,208.00 $10,716,210.50 Total Liabilities and Equity Assignment information Income Statement Changes in E READY Please use the information provided to complete: a direct method AND an indirect method statement of cash flows