At year end 2015, Yung.com had notes payable of $1200, accounts payable of $3400, and long-term debt of $3000. Corresponding entries for 2016 are $1600, $3000, and $2800. Asset values are below: Current Assets 2015 2016 Cash $600 $300 Marketable Securities 400 300 Accounts Receivable 900 800 Inventory 2000 2200 Fixed Assets Net Plant & Equipment $7000 $9000 1. Prepare the company’s balance sheets for the end of 2016 and 2015, respectively. Hint: you must calculate equity in order to balance! 2. Prepare an income statement for Yung.com for 2016. During the year 2016, Yung.com had sales of $1000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. The tax rate is 34%
At year end 2015, Yung.com had notes payable of $1200, accounts payable of $3400, and
long-term debt of $3000. Corresponding entries for 2016 are $1600, $3000, and $2800.
Asset values are below:
Current Assets 2015 2016
Cash $600 $300
Marketable Securities 400 300
Accounts Receivable 900 800
Inventory 2000 2200
Fixed Assets
Net Plant & Equipment $7000 $9000
1. Prepare the company’s
Hint: you must calculate equity in order to balance!
2. Prepare an income statement for Yung.com for 2016. During the year 2016,
Yung.com had sales of $1000, cost of goods sold of $400,
and interest paid of $150. The tax rate is 34%.
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