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Using Financial Statements for 2018-2019. Net assets available to meet preferred claims for 2019 is $8,611,350. TRUE OR FALSE?

Using Financial Statements for 2018-2019. Net assets available to meet preferred claims for 2019 is $8,611,350. TRUE OR FALSE?

FINANCIAL ACCOUNTING
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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Question 65

Using Financial Statements for 2018-2019. Net assets available to meet preferred claims for 2019 is $8,611,350.

TRUE OR FALSE?

Balance Sheet 2019 2018 Income Statement 2019 2018 Assets Sales $ 51,000,000 $ 47,000,000 Cash $ 5,100,000 $ 4,900,000 Operating Expenses: Marketable Securities 102,000 98,000 Cost of Goods Sold 5,100,000 4,700,000 Accounts Receivable 1,632,000 1,568,000 Depreciation 2,550,000 2,350,000 Inventories 2,856,000 $ 2,744,000 Selling & Admn. Expenses 6,120,000 5,640,000 Total Current Assets 9,690,000 $ 9,310,000 Total Operating Expenses $ 13,770,000 $ 12,690,000 Property, Plant, & Equipment 3,264,000 3,136,000 Operating Income 37,230,000 34,310,000 Other Fixed Assets 2,703,000 2$ 2,597,000 Other Income 102,000 94,000 Total Fixed Assets 5,967,000 $ 5,733,000 Total Income $ 37,332,000 $ 34,404,000 Total Assets $ 15,657,000 $ 15,043,000 Interest Expense 1,530,000 1,410,000 Liabilities & Equity Accounts Payable Earnings Before Tax 35,802,000 32,994,000 $ 1,878,840 $ 1,805,160 Provision for Income Tax 8,160,000 7,520,000 Notes Payable 1,722,270 1,654,730 $ 7,642,00 $ 25,474,000 Net Income Accrued Expenses Payable 1,409,130 1,353,870 1,203,440 6,017,200 752,150 Accrued Taxes Payable 1,252,560 $ Total Current Liabilities 6,262,800 $ Long-Term Debt $ 782,850 $ Total Liabilities 7,045,650 $ 6,769,350 Stockholder's Equity: Preferred Stock ($100 par, 6%) Common Stock ($5 par value) $ 1,095,990 $ 1,053,010 2,035,410 1,955,590 Paid-In Capital in Excess of Par 4,227,390 4,061,610 Retained Earnings Total Stockholder's Equity 1,252,560 $ 1,203,440 8,611,350 $ $ 15,657,000 $ 15,043,000 8,273,650 Total Liabilities & Equity
Transcribed Image Text:Balance Sheet 2019 2018 Income Statement 2019 2018 Assets Sales $ 51,000,000 $ 47,000,000 Cash $ 5,100,000 $ 4,900,000 Operating Expenses: Marketable Securities 102,000 98,000 Cost of Goods Sold 5,100,000 4,700,000 Accounts Receivable 1,632,000 1,568,000 Depreciation 2,550,000 2,350,000 Inventories 2,856,000 $ 2,744,000 Selling & Admn. Expenses 6,120,000 5,640,000 Total Current Assets 9,690,000 $ 9,310,000 Total Operating Expenses $ 13,770,000 $ 12,690,000 Property, Plant, & Equipment 3,264,000 3,136,000 Operating Income 37,230,000 34,310,000 Other Fixed Assets 2,703,000 2$ 2,597,000 Other Income 102,000 94,000 Total Fixed Assets 5,967,000 $ 5,733,000 Total Income $ 37,332,000 $ 34,404,000 Total Assets $ 15,657,000 $ 15,043,000 Interest Expense 1,530,000 1,410,000 Liabilities & Equity Accounts Payable Earnings Before Tax 35,802,000 32,994,000 $ 1,878,840 $ 1,805,160 Provision for Income Tax 8,160,000 7,520,000 Notes Payable 1,722,270 1,654,730 $ 7,642,00 $ 25,474,000 Net Income Accrued Expenses Payable 1,409,130 1,353,870 1,203,440 6,017,200 752,150 Accrued Taxes Payable 1,252,560 $ Total Current Liabilities 6,262,800 $ Long-Term Debt $ 782,850 $ Total Liabilities 7,045,650 $ 6,769,350 Stockholder's Equity: Preferred Stock ($100 par, 6%) Common Stock ($5 par value) $ 1,095,990 $ 1,053,010 2,035,410 1,955,590 Paid-In Capital in Excess of Par 4,227,390 4,061,610 Retained Earnings Total Stockholder's Equity 1,252,560 $ 1,203,440 8,611,350 $ $ 15,657,000 $ 15,043,000 8,273,650 Total Liabilities & Equity
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