Response:
Income statement
sales 78000
costs (25000
)
insurance (7000
)
depreciation (9000
)
EBIT 37000
TAX (11000)
net profit 26000
EPS 3.25
STATEMENT OF STOCKHOLDER'S EQUITY
Common stock retained earnings additional paid-in capital
opening balance 8000 9000 57000
net profit 26000
closing balance 8000 35000 57000
BALANCE SHEET
assets
non current assets 154000
machinery 77000
accumulated depreciation (20000)
book value 57000
current assets 36000
prepaid insurance 3000
cash 18000
accounts receivable 15000
total assets 190000
Equity and liabilities
stockholder's equity 100000
common stock 8000
retained earnings 35000
paid-in capital 57000
Liabilities 90000
current liabilities 90000
Accounts payable 11000
wages payable 4000
income tax payable 75000 balancing figure
Clarification:
missing data;
Additional information yet to be recorded as of December 31 includes:
Insurance that expired in the current year, $7.
Wages owed, $4.
Depreciation expense incurred this year, $9.
Income tax expense for the year, $11.
Requirements:
1. Based on the adjusted figures, create an income statement for the current year. (Round "Earnings per share" to two decimal points. Submit answers in thousands.)
2. Based on the adjusted figures, compile a statement of stockholders’ equity for the current year. (Negative amounts should be noted with a minus sign. Provide answers in thousands.)
3. Based on the adjusted figures, construct a balance sheet for the current year. (Negative amounts should be noted with a minus sign. Provide answers in thousands.)
