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a. Prepare an income statement for 20XY. (Input all answers as positive values.) Income Statement For the Year Ending December 31, 20XY. Sales

a. Prepare an income statement for 20XY. (Input all answers as positive values.) Income Statement For the Year Ending December 31, 20XY. Sales

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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20XX means last year. 20XY means current year. For December 31, 20XX (last year), the balance sheet is as follows. Balance Sheet Liabilities $15,800 Accounts payable 22,100 Notes payable 26,400 Bonds payable 20,100 Current Assets Cash Accounts receivable Inventory Prepaid expenses Capital Assets Plant and equipment (gross) Less: Accumulated amortization Net plant and equipment Total assets Shareholders' Equity $311,000 Common stock 57,200 Retained eamings 253,800 $338,200 Total liabilities and shareholders' equity Balance sheet $17,700 25,600 55,100 $75,000 164,800 $338,200 Sales for 20XY were $314,000, with cost of goods sold being 70 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 19 percent, while interest on the notes payable was 17 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $31,100, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 12 percent, and accounts payable increased by 27 percent. A new machine was purchased on December 31, 20XY, at a cost of $28,000. A cash dividend of $11,500 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $6,904 and bonds payable decreased by 10,520. The common stock account did not change. Please only enter numbers. No decimal places. No $. No comma. a. Prepare an income statement for 20XY. (Input all answers as positive values.) Income Statement For the Year Ending December 31, 20XY.
Transcribed Image Text:20XX means last year. 20XY means current year. For December 31, 20XX (last year), the balance sheet is as follows. Balance Sheet Liabilities $15,800 Accounts payable 22,100 Notes payable 26,400 Bonds payable 20,100 Current Assets Cash Accounts receivable Inventory Prepaid expenses Capital Assets Plant and equipment (gross) Less: Accumulated amortization Net plant and equipment Total assets Shareholders' Equity $311,000 Common stock 57,200 Retained eamings 253,800 $338,200 Total liabilities and shareholders' equity Balance sheet $17,700 25,600 55,100 $75,000 164,800 $338,200 Sales for 20XY were $314,000, with cost of goods sold being 70 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 19 percent, while interest on the notes payable was 17 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $31,100, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 12 percent, and accounts payable increased by 27 percent. A new machine was purchased on December 31, 20XY, at a cost of $28,000. A cash dividend of $11,500 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $6,904 and bonds payable decreased by 10,520. The common stock account did not change. Please only enter numbers. No decimal places. No $. No comma. a. Prepare an income statement for 20XY. (Input all answers as positive values.) Income Statement For the Year Ending December 31, 20XY.
a. Prepare an income statement for 20XY. (Input all answers as positive values.) Income Statement For the Year Ending December 31, 20XY. Sales Cost of goods sold Selling and administration expense Amortization expense Interest expense Taxes Earnings after taxes (net income)
Transcribed Image Text:a. Prepare an income statement for 20XY. (Input all answers as positive values.) Income Statement For the Year Ending December 31, 20XY. Sales Cost of goods sold Selling and administration expense Amortization expense Interest expense Taxes Earnings after taxes (net income)
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