Create an income statement and a balance sheet from the information below (this information is repeated but remains the same onother questions). Assume that the income tax rate for Peter's cookies is 6% and Peter's cookies does not incur any additional debt,issue any additional stock or distribute any dividends (hint: round up taxes to next whole dollar and net income is equal to retainedearnings).Financial dataCashCost of goods soldShort term debtSales(revenue)BuildingLong term debtExpensesInventoryInterest expense$88,666$66,688$88,86612,000$66,88890,555100,000241,055175,000Equipment32,733Accounts payable 122,000Accounts receivable 36,000Equity35,000Marketable securities 150,000As of December 31, 2012 what is the net income for Peter's Cookies120,00073,55537,9556,000

To calculate the net income for Peter Cookies, the expenses incurred and income tax must be reduced…

Answered: of goods sold term debt revenue) ng…

Business

Accounting

of goods sold term debt revenue) ng 12,000 90,555 100,000 241,055 175,000

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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