E1-31A. (Learning Objective 4: Construct an income statement, statement of retainedearnings, and balance sheet) During 2018, Edwin Company earned revenues of $150million. Edwin incurred, during that same year, salary expense of $34 million, rent expenseof $23 million, and utilities expense of $16 million. Edwin declared and paid dividends of$16 million during the year. At December 31, 2018, Edwin had cash of $185 million, accountsreceivable of $70 million, property and equipment of $35 million, and other long-term assetsof $22 million. At December 31, 2018, the company owed accounts payable of $56 millionand had a long-term note payable of $26 million. Edwin began 2018 with a balance in retainedearnings of $73 million. At December 31, 2018, Edwin had total stockholders’ equity of$230 million, which consisted of common stock and retained earnings. Edwin has a year-end ofDecember 31. Prepare the following financial statements (with proper headings) for 2018:1. Income statement,2. Statement of retained earnings,3. Balance sheet
E1-31A. (Learning Objective 4: Construct an income statement, statement of
earnings
million. Edwin incurred, during that same year, salary expense of $34 million, rent expense
of $23 million, and utilities expense of $16 million. Edwin declared and paid dividends of
$16 million during the year. At December 31, 2018, Edwin had cash of $185 million, accounts
receivable of $70 million, property and equipment of $35 million, and other long-term assets
of $22 million. At December 31, 2018, the company owed accounts payable of $56 million
and had a long-term note payable of $26 million. Edwin began 2018 with a balance in retained
earnings of $73 million. At December 31, 2018, Edwin had total
$230 million, which consisted of common stock and retained earnings. Edwin has a year-end of
December 31. Prepare the following financial statements (with proper headings) for 2018:
1. Income statement,
2. Statement of retained earnings,
3. Balance sheet
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