Required information [The following information applies to the questions displayed below.] Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue Required: 1. Prepare a summarized income statement for the year. Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 30% × pretax income; all paid during the current year Common stock (December 31) Dividends declared and paid during the current year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) HIGHLIGHT CONSTRUCTION COMPANY Income Statement For the Year Ended December 31, Current Year Total sales revenue $ Total expenses Pretax income Income tax expense Net income $ $ 26,000 12,000 81,000 42,500 46,340 2,400 120,000 81,200 38,800 11,640 0 27,160 120,000 81,200 ? 97,200 11,600
Required information [The following information applies to the questions displayed below.] Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue Required: 1. Prepare a summarized income statement for the year. Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 30% × pretax income; all paid during the current year Common stock (December 31) Dividends declared and paid during the current year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) HIGHLIGHT CONSTRUCTION COMPANY Income Statement For the Year Ended December 31, Current Year Total sales revenue $ Total expenses Pretax income Income tax expense Net income $ $ 26,000 12,000 81,000 42,500 46,340 2,400 120,000 81,200 38,800 11,640 0 27,160 120,000 81,200 ? 97,200 11,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I did this, but I forgot. How do you find each of the values again?
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Required information
[The following information applies to the questions displayed below.]
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations
(December 31), the following financial data for the company are available:
Cash
Receivables from customers (all considered collectible)
Inventory of merchandise (based on physical count and priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
Salary payable (on December 31, this was owed to an employee who will be paid on January 10)
Total sales revenue
Required:
1. Prepare a summarized income statement for the year.
Expenses, including the cost of the merchandise sold (excluding income taxes)
Income tax expense at 30% × pretax income; all paid during the current year
Common stock (December 31)
Dividends declared and paid during the current year
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
HIGHLIGHT CONSTRUCTION COMPANY
Income Statement
For the Year Ended December 31, Current Year
Total sales revenue
$
Total expenses
Pretax income
Income tax expense
Net income
$
$ 26,000
12,000
81,000
42,500
46,340
2,400
120,000
81,200
38,800
11,640
0
27,160
120,000
81,200
?
97,200
11,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b66953-d8c0-491f-82b9-53ac9723ea16%2Fdf6fcbe6-8e5a-4a6f-837c-27e3fc98ddaf%2F1wahoyr_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations
(December 31), the following financial data for the company are available:
Cash
Receivables from customers (all considered collectible)
Inventory of merchandise (based on physical count and priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
Salary payable (on December 31, this was owed to an employee who will be paid on January 10)
Total sales revenue
Required:
1. Prepare a summarized income statement for the year.
Expenses, including the cost of the merchandise sold (excluding income taxes)
Income tax expense at 30% × pretax income; all paid during the current year
Common stock (December 31)
Dividends declared and paid during the current year
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
HIGHLIGHT CONSTRUCTION COMPANY
Income Statement
For the Year Ended December 31, Current Year
Total sales revenue
$
Total expenses
Pretax income
Income tax expense
Net income
$
$ 26,000
12,000
81,000
42,500
46,340
2,400
120,000
81,200
38,800
11,640
0
27,160
120,000
81,200
?
97,200
11,600
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