Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Please show all dollar amount to thousands of dollars. Rhodes Corporation: Income Statements for Year Ending December 3120192018Sales11,000,00010,000,000COGS9,322,0008,448,000Gross profit1,678,0001,552,000Depreciation and amortization380,000360,000Selling & Admin. Expenses290,000280,000Earnings before interest and taxes1,008,000912,000Interest expense220,000100,000Earnings before taxes788,000812,000Taxes197,000203,000Net income591,000609,000Rhodes Corporation: Balance Sheets as of December 3120192018AssetsCash842,000500,000Short-term investments110,000100,000Accounts receivable2,750,0002,50Inventories1,650,0001,500,000Total current assets5,352,0004,600,000Gross plant and equipment4,813,0004,375,000Accumulated Depreciation1,255,000875,000Net plant and equipment3,558,0003,500,000Total assets8,910,0008,100,000Liabilities & Owner's EquityAccounts Payable1,100,0001,000,000Accruals550,000500,000Notes Payable384,000200,000Total current liabilities2,034,0001,700,000Long-term debt1,100,0001,000,000Total liabilities3,134,0002,700,000Common stock4,312,0004,400,000Retained earnings1,464,0001,000,000Total common equity5,776,0005,400,000Total liabilities and equity8,910,0008,100,000Note:Tax rate25%

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Answered: Recreate the income statement and…

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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Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Please show all dollar amount to thousands of dollars.

Rhodes Corporation: Income Statements for Year Ending December 31
2019
2018
Sales
11,000,000
10,000,000
COGS
9,322,000
8,448,000
Gross profit
1,678,000
1,552,000
Depreciation and amortization
380,000
360,000
Selling & Admin. Expenses
290,000
280,000
Earnings before interest and taxes
1,008,000
912,000
Interest expense
220,000
100,000
Earnings before taxes
788,000
812,000
Taxes
197,000
203,000
Net income
591,000
609,000
Rhodes Corporation: Balance Sheets as of December 31
2019
2018
Assets
Cash
842,000
500,000
Short-term investments
110,000
100,000
Accounts receivable
2,750,000
2,50
Inventories
1,650,000
1,500,000
Total current assets
5,352,000
4,600,000
Gross plant and equipment
4,813,000
4,375,000
Accumulated Depreciation
1,255,000
875,000
Net plant and equipment
3,558,000
3,500,000
Total assets
8,910,000
8,100,000
Liabilities & Owner's Equity
Accounts Payable
1,100,000
1,000,000
Accruals
550,000
500,000
Notes Payable
384,000
200,000
Total current liabilities
2,034,000
1,700,000
Long-term debt
1,100,000
1,000,000
Total liabilities
3,134,000
2,700,000
Common stock
4,312,000
4,400,000
Retained earnings
1,464,000
1,000,000
Total common equity
5,776,000
5,400,000
Total liabilities and equity
8,910,000
8,100,000
Note:
Tax rate
25%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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