Using the information below I am looking for assistance to filling in the blanks in the attached photos. The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $35,500 $20,800 Accounts receivable 32,500 19,800 Inventory 26,150 20,850 Equipment 59,600 77,650 Accumulated depreciation—equipment (29,650 ) (23,150 ) Total $124,100 $115,950 Liabilities and Stockholders’ Equity Accounts payable $28,200 $ 16,750 Income taxes payable 7,350 8,150 Bonds payable 27,400 33,900 Common stock 18,650 14,950 Retained earnings 42,500 42,200 Total $124,100 $115,950 NOSKER COMPANY Income Statement For the Year Ended December 31, 2020 Sales revenue $241,150 Cost of goods sold 175,100 Gross profit 66,050 Operating expenses 23,050 Income from operations 43,000 Interest expense 3,500 Income before income taxes 39,500 Income tax expense 7,200 Net income $32,300 Additional data: 1. Dividends declared and paid were $32,000. 2. During the year, equipment was sold for $8,500 cash. This equipment cost $18,050 originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense, $16,050, is in the operating expenses. 4. All sales and purchases are on account.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Using the information below I am looking for assistance to filling in the blanks in the attached photos. The following are the financial statements of Nosker Company.
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NOSKER COMPANY
Comparative Balance Sheets December 31 |
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Assets
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2020
|
2019
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| Cash |
$35,500
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$20,800
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| Accounts receivable |
32,500
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19,800
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| Inventory |
26,150
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20,850
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| Equipment |
59,600
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77,650
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(29,650
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)
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(23,150
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)
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| Total |
$124,100
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$115,950
|
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|
Liabilities and
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| Accounts payable |
$28,200
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$ 16,750
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| Income taxes payable |
7,350
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8,150
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| Bonds payable |
27,400
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33,900
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| Common stock |
18,650
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14,950
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|
42,500
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42,200
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| Total |
$124,100
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$115,950
|
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NOSKER COMPANY
Income Statement For the Year Ended December 31, 2020 |
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| Sales revenue |
$241,150
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|
| Cost of goods sold |
175,100
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|
| Gross profit |
66,050
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|
| Operating expenses |
23,050
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|
| Income from operations |
43,000
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|
| Interest expense |
3,500
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|
| Income before income taxes |
39,500
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|
| Income tax expense |
7,200
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|
| Net income |
$32,300
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Additional data:
| 1. | Dividends declared and paid were $32,000. | |
| 2. | During the year, equipment was sold for $8,500 cash. This equipment cost $18,050 originally and had a book value of $8,500 at the time of sale. | |
| 3. | All depreciation expense, $16,050, is in the operating expenses. | |
| 4. | All sales and purchases are on account. |
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