Required: Based on the information in the table below, prepare an income statement for Windswept Woodworks, Incorporated for year 2. Assume that the company pays a flat tax rate of 21% on its taxable income. (Round your answers to 2 decimal places.) Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share year end Number of shares outstanding Sales Windswept Woodworks, Incorporated Income Statement for the period ending December 31, Year 2 Cost of goods sold Gross profit on sales Depreciation expense (millions of dollars) Earnings before interest and taxes Interest expense Taxable income Taxes (@21%) Net income Year 2 Year 1 572 504 1,416 950 6,882 6,752 360 248 1,320 1,240 1,540 n.a. ? n.a. ? n.a. 180 n.a. 1,150 1,146 602 n.a. 948 856 270 420 10,420 10,160 3,198 2,596 3,058 156 21% $ 22.80 500 million n.a. 136 n.a. $ 20.50 500 million

Required: Based on the information in the table below, prepare an income statement for Windswept Woodworks, Incorporated for year 2. Assume that the company pays a flat tax rate of 21% on its taxable income. (Round your answers to 2 decimal places.) Windswept Woodworks, Incorporated Input Data (millions of dollars) Accounts payable Accounts receivable Accumulated depreciation Cash & equivalents Common stock Cost of goods sold Depreciation expense Common stock dividends paid Interest expense Inventory Addition to retained earnings Long-term debt Notes payable Gross plant & equipment Retained earnings Sales Other current liabilities Tax rate Market price per share year end Number of shares outstanding Sales Windswept Woodworks, Incorporated Income Statement for the period ending December 31, Year 2 Cost of goods sold Gross profit on sales Depreciation expense (millions of dollars) Earnings before interest and taxes Interest expense Taxable income Taxes (@21%) Net income Year 2 Year 1 572 504 1,416 950 6,882 6,752 360 248 1,320 1,240 1,540 n.a. ? n.a. ? n.a. 180 n.a. 1,150 1,146 602 n.a. 948 856 270 420 10,420 10,160 3,198 2,596 3,058 156 21% $ 22.80 500 million n.a. 136 n.a. $ 20.50 500 million

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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