se Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting. 1. Using examples from your textbook, or online research, prepare the Solar Solutions multi-step income statement for the year ended December 31, 2020. Include the EPS at the bottom. Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.) 2. Prepare the Solar Solutions balance sheet for December 31, 2020. Include a vertical analysis column at the right and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) 3. Prepare the Solar Solutions statement of cash flows for the year ended December 31, 2020. Use the indirect method. Your textbook has examples of this.
se Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting. 1. Using examples from your textbook, or online research, prepare the Solar Solutions multi-step income statement for the year ended December 31, 2020. Include the EPS at the bottom. Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.) 2. Prepare the Solar Solutions balance sheet for December 31, 2020. Include a vertical analysis column at the right and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) 3. Prepare the Solar Solutions statement of cash flows for the year ended December 31, 2020. Use the indirect method. Your textbook has examples of this.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Solar Solutions began operations on January 1, 2015, and is now in its sixth year of operations. It is a retail sales company with a large amount of online sales.
The adjusted trial balance as of December 31, 2020 appears below, along with prior year balance sheet data and some additional transaction data for 2020.
SOLAR SOLUTIONS
Adjusted Trial Balance
12/31/2020
2020
2019
Account Title
Adjusted Trial Balance
Post-Closing Trial Balance
Debit
Credit
Debit
Credit
Cash
$
122,200
55,000
125,600
Accounts Receivable
35,000
Prepaid Insurance
5,000
6,000
|Inventory
Office Equipment
Machinery & Tools
Accumulated Depreciation
Accounts Payable
Salaries Payable
Sales Tax Payable
Note Payable-Long Term
Common Stock, $10 par
46,000
15,600
63,000
47,000
59,000
21,000
21,000
16,000
11,200
16,800
2,600
2,700
2,000
4,000
31,000
22,100
240,000
160,000
Retained Earnings
28,600
28,600
Dividends
10,000
Sales Revenue
Cost of Goods Sold
Rent Expense
Salaries Expense
235,000
127,600
20,000
36,000
Insurance Expense
11,800
Advertising Expense
Depreciation Expense
Interest Expense
6,000
5,000
1,800
Income Tax Expense
3,000
$
571,400 $
571,400 $
250,200
250,200
Transaction Data for 2020 (Note, these transactions were included in the trial balance numbers above.)
Cash paid for purchase of office equipment
$
6,000
Cash paid for purchase of tools
Acquisition of Machinery with Notes Payable-Long-term
10,000
38,000
Payment on Long Term Debt
Cash payment of dividends
?
10,000
Cash receipt from issuance of 10,000 shares of common stock
80,000

Transcribed Image Text:Use Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting.
1. Using examples from your textbook, or online research, prepare the Solar Solutions multi-step income statement for the year ended December 31, 2020. Include the EPS at the
bottom.
Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.)
2. Prepare the Solar Solutions balance sheet for December 31, 2020. Include a vertical analysis column at the right
and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.)
3. Prepare the Solar Solutions statement of cash flows for the year ended December 31, 2020. Use the indirect method. Your textbook has examples of this.
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