Question
Winterbotham Corporation provided the following listing of financial statement elements and their respectivebalances. The periodic amounts relate to the year ending December 31, 20X5, and
Winterbotham Corporation provided the following listing of financial statement elements and their respectivebalances. The periodic amounts relate to the year ending December 31, 20X5, and the point-in-timeamounts reflect balances as of December 31, 20X5, unless otherwise implied. Unfortunately, the companyhas been unable to locate its listing of assets; but, all other information is incomplete, although in disarray.Capital stock $250,000 Utilities expense 11,000Wage expense 40,000 Accounts payable 12,500Revenue 80,000 Dividends 2,500Rent expense 22,000 Notes payable 50,000Beginning retained earnings 89,000(a) Determine Winterbothams net income for the year ending December 31, 20X5.(b) How much are total assets of the company, as of December 31, 20X5?(c) If you were told that assets included an accounts receivable of $5,000 for services provided during20X5, and that such transactions had been excluded in calculating the given revenue amount,how would this influence your answer to part (a) above?
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