**Blooming Flower Company Financial Exercise**Blooming Flower Company was inaugurated in Year 1 with an acquisition of $60,900 in cash through the issuance of common stock. Below is a summary of the company's operating activities over its first three years. It is assumed that all transactions were cash-based.### Financial Data Summary| | Year 1 | Year 2 | Year 3 ||---------------|---------|---------|---------|| **Purchases of Inventory** | $23,800 | $11,200 | $19,500 || **Sales** | $26,900 | $30,200 | $37,700 || **Cost of Goods Sold** | $12,500 | $17,600 | $19,300 || **Selling and Administrative Expenses** | $5,310 | $8,100 | $9,150 |### Required TaskPrepare income statements (using the multistep format) and balance sheets for each fiscal year. **Hint**: Record transaction data for each accounting period in the accounting equation before preparing the financial statements for each year.#### InstructionsComplete this assignment by entering your answers in the interactive tabs below:- **Income Statements Tab**: Compile the multistep income statement for each fiscal year. Consider organizing data as follows for each year: - Sales Revenue - Cost of Goods Sold - Gross Profit - Selling and Administrative Expenses - Operating Expenses - Net Income- **Balance Sheets Tab**: Proceed to prepare balance sheets highlighting assets, liabilities, and equity for each fiscal year.

The income statement and balance sheet are important financial statements of a business. The financial statements of the business are prepared using the adjusted trial balance of the business.Balance Sheet Is A Statement Of Financial Position.. It Is One Of The Three Major Financial Statements. It Shows The Total Assets, Total Liabilities And Stockholders' Equity For A Specific Period Of Time.Income Statement Is One Of The Three Major Financial Statements. It Shows The Total Revenues, Total Expenses And Profitability Over A Particular Period Of Time.Preparing An Income Statement (Using Multiple Format) For Each Fiscal Year - BLOOMING FLOWER COMPANYIncome StatementsFor The Year Ended December 31Year 1Year 2Year 3Sales$26,900$30,200$37,700Cost Of Goods Sold($12,500)($17,600)($19,300)Gross Margin$14,400$12,600$18,400Operating Expenses Selling And Administrative Expenses($5,310)($8,100)($9,150)Net income$9,090$4,500$9,250Preparing a Balance Sheet For Each Fiscal Year - BLOOMING FLOWER COMPANYBalance SheetAs Of Year Ended December 31Year 1Year 2Year 3Assets Cash$58,690$69,590$78,840 Merchandise Inventory$11,300$4,900$5,100Total Assets$69,990$74,490$83,940LiabilitiesStockholders' Equity Common Stock$60,900$60,900$60,900 Retained Earnings$9,090$13,590$22,840Total Stockholders' Equity$69,990$74,490$83,740Total Liabilities And Stockholders' Equity$69,990$74,490$83,940Working Note -1) Calculation Of The Ending Cash Balance - Ending Cash BalanceYear 1Year 2Year 3Beginning Balance$0$58,690$69,590Add : Stock Issued$60,900$0$0Add : Sales$26,900$30,200$37,700Less : Purchase Of Inventory($23,800)($11,200)($19,300)Less : Selling And Administrative Expense($5,310)($8,100)($9,150)Ending Cash Balance$58,690$69,590$78,8402) Calculation Of The Inventory - InventoryYear 1Year 2Year 3Beginning Balance$0$11,300$4,900Add : Purchases$23,800$11,200$19,500Less : Cost Of Goods Sold($12,500)($17,600)($19,300)Ending Balance$11,300$4,900$5,1003) Calculation Of The Balance Of Retained Earnings - Retained EarningsYear 1Year 2Year 3Beginning Retained Earnings Balance$0$9,090$13,590Add : Net Income$9,090$4,500$9,250Ending Retained Earnings Balance$9,090$13,590$22,840Preparing An Income Statement (Using Multiple Format) For Each Fiscal Year - Year 1Year 2Year 3Net Income$9,090$4,500$9,250Preparing a Balance Sheet For Each Fiscal Year - Year 1Year 2Year 3Balance Sheet Balance$69,990$74,490$83,940

Business

Accounting

ming Flower Company was started in Year 1 when it acquired $60,900 marize the company's first three years' operating activities. Assume that all transactions were cash transactions. rchases of inventory les st of goods sold lling and administrative expenses Year 1 $23,800 26,900 12,500 5,310 Year 2 $11, 200 30, 200 17,600 8,100 Year 3 $19,500 37,700 19,300 9,150 uired Dare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each oquation before preparing the statements for that year.)

ming Flower Company was started in Year 1 when it acquired $60,900 marize the company's first three years' operating activities. Assume that all transactions were cash transactions. rchases of inventory les st of goods sold lling and administrative expenses Year 1 $23,800 26,900 12,500 5,310 Year 2 $11, 200 30, 200 17,600 8,100 Year 3 $19,500 37,700 19,300 9,150 uired Dare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each oquation before preparing the statements for that year.)

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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nces Blooming Flower Company was started in Year 1 when it acquired $60,500 cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions. Purchases of inventory Sales Cost of goods sold Selling and administrative expenses Income Statements Required: Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Complete this question by entering your answers in the tabs below. Balance Sheets Assets Cash Merchandise inventory Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.) Total assets Liabilities Stockholders' equity Common stock Retained earnings Year 1 $ 22,200 26,400 12,500…
Cash Accounts receivable Raw materiala inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Coat of goods sold Factory overhead General and administrative expenses Totals Debit Credit $ 71,000 40,000 25,000 0 12,000 4,000 $ 10,000 13,000 112,000 24,000 40,000 40,000 94,000 171,000 $ 328,000 $ 328,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materiala requisition 111 Materials requisition 121 Labor time ticket 521 Labor time ticket 53: Labor time ticket 541 $ 4,800 direct materials to Job 402 $ 7,400 direct materials to Job 404 $ 2,100 indirect materiala $ 6,000 direct labor to Job 402 $ 14,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost. Problem 19-3A (Algo) Parts 4 and 5 4. Prepare an income…
Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 29,484 $ 34,808 $ 35,907 Accounts receivable, net 84,598 59,105 49,830 Merchandise inventory 104,217 80,494 51,503 Prepaid expenses 9,590 8,775 4,071 Plant assets, net 271,834 247,614 228,789 Total assets $ 499,723 $ 430,796 $ 370,100 Liabilities and Equity Accounts payable $ 124,431 $ 73,533 $ 50,319 Long-term notes payable 94,887 100,074 81,792 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 117,905 94,689 75,489 Total liabilities and equity $ 499,723 $ 430,796 $ 370,100 For both the current year and one year ago, compute the following ratios: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the…
An excerpt from Ivanhoe Company's accounting records is provided below. Sales revenue $627,000 Cost of goods sold 346,500 Wages expense 123,750 Depreciation expense 15,675 Rent expense 50,325 Interest expense 4,950 Income tax expense 14,850 Retained earnings 36,300 Dividends declared 16,500 Wages payable 12,375 Cash 41,250 Accounts receivable 61,875 Accounts payable 82,500 M σε Ac Q Ac Q Ac Using only the data provided above, record all the required closing entries using proper Journal Entry form. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Q Ac A C M N
TB MC Qu. 11-161 (Algo) A company purchases its inventory from... A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $18 million and its accounts payable to suppliers decreased by $2 million. If cost of goods sold was $460 million, its cash outflows to inventory suppliers totaled: Multiple Choice $480 million. $440 million. $476 million. $444 million.
Income statements for Burch Company for Year 3 and Year 4 follow: BURCH COMPANY Income Statements Year 4 Year 3 $200,000 124,000 20,000 18,000 $240,000 180,000 Sales Cost of goods sold Selling expenses Administrative expenses 26,000 12,000 7,500 $225,500 14,500 1,200 $ 13,300 8,000 $170,000 30,000 3,000 $ 27,000 Interest expense Total expenses Income before taxes Income taxes expense Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required 8 Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place, (i.e., 0.234 should be entered as 23.4).) BURCH…
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The Income statement for the year ended December 31, 20X6, for Total Inc. contains the following Information: Total Inc. Income Statement Year Ended December 31, 20X6 sale Cost of goods sold Gross Profit Operating Expenses Profit from Operations Income Tax Expense Profit $50,000 $30,000 $20,000 $15,000 $ 5,000 $ 3,000 $ 2,000 Total Inc. comparative balance sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation - equipment Total Assets Account Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity 20x6 $ 1,200 $ 300 $ 5,000 $12,000 $(4,000) $14,500 20x5 $ 1,000 $ 1,500 $ 3,000 $ 8,000 $(2,000) $11,500 $ 1,000 $ 2,000 $10,000 $ 1,500 $ $14,500 $ 3,500 $ $ 8,000 $11,500 Additional Information: 1. Operating expenses include depreciation expense of $2,500 2 Accounts Payable related to the purchase of Inventory 3. Equipment that cost $2,000 was sold for $1,500 cash 4. New equipment was purchased during the…
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The following information pertains to Guy's Gear Company: Sales $77,000 Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense $48,500 5,700 11,700 65,900 $11,100 Net Income $ 3,700 7,700 Accounts Receivable Decrease Inventory Increase Salaries and Wages Payable Increase 720