The income statement for the year ended December 31, 2015, the balance sheets for December 31, 2015
Question:
Technica, Inc., Income Statement for the Year Ended December 31, 2015 Sales revenue $600,000 460,000 $140,000 Less: Cost of goods sold Gross profits Less: Operating expenses S 30,000 30,000 S 60,000 S 80,000 10,000 S 70,000 27,100 General and administrative expenses Depreciation expense Total operating expense Operating profits Net profits before taxes Earnings available for common stockholders Less: Interest expense Less: Taxes Earnings per share (EPS) $2.15 Technica, Inc., Balance Sheets December 31 2015 2014 S 16,000 Assets Cash Marketable securities Accounts Inventories S 15,000 7,200 8,000 receivable 34,100 82,000 42,200 50,000 $138,300 $116200 Total current assets Land and buildings Machinery and equipment Furniture and fixtures Other S150,000 200,000 54,000 11,000 $415,000 145,000 $270,000 $408,000 $150,000 190,000 50,000 10,000 $400,000 115,000 $285,000 $401,200 Total gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals S 49,000 16,000 6,000 S 75,000 71,000 $160,000 $120,000 S 57,000 13,000 5,000 Total current liabilities Long-term debt Common stock equity (shares outstanding 150,000 S110,200 19,500 in 2015 and 20,000 in 2014) Retained earnings 73,10050,200 $183,300 $170,200 Total stockholders' equity Total liabilities and stockholders' equity$408,300 Technica, Inc., State ment of Retained Earnings for the Year Ended December 31,2015 Retained earnings balance (January 1, 2015) Plus: Net profits after taxes (for 2015) Less: Cash dividends (paid during 2015) $50,200 42,900 20,000 Retained earnings balance (December 31, 2015)
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Income statement In this oneyear summary of the firms operations Technica Inc showed a ...View the full answer
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
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