The Balance Sheet and income statement shown for TANG Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable will be rolled over.Find:1) Break-even point Balance sheet (mi llions of $2AssetsCash and securitiesAccounts receivableInventoriesTotal current assetsNet plant and equipmentTotai Assets2500115001600030 00020 00050 0004iabilities and equityACcounts payableAccruals950055 007000Notes payableTotal current liabilities२२०००Long term bondsTotål lrabilities1500037 0002000Common stockRefained earningsTotal common equityTotal liabilitier and equity// 0001300050 000Income stafement (milons op $)875008/813Net SQlesOperating cotts except depreciationbepreciationEamings bef interest and faxes (EBIT) 4156Less interestEarnings before tax er CEBT)paxesNet income153113752781973I 80 80ther dataS hares outstanding Cmillions )|Common diridendsInt.rate on notes paya ble 4d-7 bondsPederal plus state income tax rateYear end stoch price5003२. ३6.25 7.35 /.43.39

Given: Depreciation =1531Interest =1375Taxes =973Sales =87500Variable cost =81813

Answered: The Balance Sheet and income statement…

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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The Balance Sheet and income statement shown for TANG Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years and the notes payable will be rolled over. Find: 1) Break-even point

Balance sheet (mi llions of $2
Assets
Cash and securities
Accounts receivable
Inventories
Total current assets
Net plant and equipment
Totai Assets
2500
11500
16000
30 000
20 000
50 000
4iabilities and equity
ACcounts payable
Accruals
9500
55 00
7000
Notes payable
Total current liabilities
२२०००
Long term bonds
Totål lrabilities
15000
37 000
2000
Common stock
Refained earnings
Total common equity
Total liabilitier and equity
// 000
13000
50 000
Income stafement (milons op $)
87500
8/813
Net SQles
Operating cotts except depreciation
bepreciation
Eamings bef interest and faxes (EBIT) 4156
Less interest
Earnings before tax er CEBT)
paxes
Net income
1531
1375
2781
973
I 80 8
0ther data
S hares outstanding Cmillions )
|Common diridends
Int.rate on notes paya ble 4d-7 bonds
Pederal plus state income tax rate
Year end stoch price
500
3२. ३
6.25 7.
35 /.
43.39

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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