The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt-equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales $ 756,000 Costs 612,000 Other expenses 25,500 Earnings before interest and taxes $ 118,500 Interest paid 11,200 Taxable income $ 107,300 Taxes (23%) 24,679 Net income $ 82,621 Dividends $ 41,340 Addition to retained earnings 41,281 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 24,540 Accounts payable $ 58,600 Accounts receivable 33,890 Notes payable 15,500 Inventory 70,790 Total $ 74,100 Total $ 129,220 Long-term debt $ 104,000 Owners’ equity Fixed assets Common stock and paid-in surplus $ 99,000 Net plant and equipment $ 213,000 Retained earnings 65,120 Total $ 164,120 Total assets $ 342,220 Total liabilities and owners’ equity $ 342,220 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt-equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales $ 756,000 Costs 612,000 Other expenses 25,500 Earnings before interest and taxes $ 118,500 Interest paid 11,200 Taxable income $ 107,300 Taxes (23%) 24,679 Net income $ 82,621 Dividends $ 41,340 Addition to retained earnings 41,281 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 24,540 Accounts payable $ 58,600 Accounts receivable 33,890 Notes payable 15,500 Inventory 70,790 Total $ 74,100 Total $ 129,220 Long-term debt $ 104,000 Owners’ equity Fixed assets Common stock and paid-in surplus $ 99,000 Net plant and equipment $ 213,000 Retained earnings 65,120 Total $ 164,120 Total assets $ 342,220 Total liabilities and owners’ equity $ 342,220 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...
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The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the |
CROSBY, INCORPORATED | ||
2020 Income Statement | ||
Sales | $ 756,000 | |
---|---|---|
Costs | 612,000 | |
Other expenses | 25,500 | |
Earnings before interest and taxes | $ 118,500 | |
Interest paid | 11,200 | |
Taxable income | $ 107,300 | |
Taxes (23%) | 24,679 | |
Net income | $ 82,621 | |
Dividends | $ 41,340 | |
Addition to |
41,281 |
CROSBY, INCORPORATED | |||
Balance Sheet as of December 31, 2020 | |||
Assets | Liabilities and Owners’ Equity | ||
---|---|---|---|
Current assets | Current liabilities | ||
Cash | $ 24,540 | Accounts payable | $ 58,600 |
Accounts receivable | 33,890 | Notes payable | 15,500 |
Inventory | 70,790 | Total | $ 74,100 |
Total | $ 129,220 | Long-term debt | $ 104,000 |
Owners’ equity | |||
Fixed assets | Common stock and paid-in surplus | $ 99,000 | |
Net plant and equipment | $ 213,000 | Retained earnings | 65,120 |
Total | $ 164,120 | ||
Total assets | $ 342,220 | Total liabilities and owners’ equity | $ 342,220 |
Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) |
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