Use the following information for Ingersoll, Inc., (assume the tax rate is 40 pe
ID: 1201266 • Letter: U
Question
Use the following information for Ingersoll, Inc., (assume the tax rate is 40 percent): 2014 2015 Sales $ 8,035 $ 8,609 Depreciation 1,145 1,146 Cost of goods sold 2,716 3,080 Other expenses 659 554 Interest 545 623 Cash 4,129 5,223 Accounts receivable 5,459 6,147 Short-term notes payable 814 766 Long-term debt 13,680 16,250 Net fixed assets 34,655 35,517 Accounts payable 4,356 4,205 Inventory 9,690 9,958 Dividends 976 1,071 Prepare and income statement 2014 & 2015 and Balance Sheet ending Dec 31
Explanation / Answer
Income statement
Particulars
2014
2015
Sales
8,035
8,609
Less: Expenses:
Cost of goods sold
2,716
3,080
Depreciation
1,145
1,146
Other expenses
659
554
Interest
545
623
Net income before tax
2,970
3,206
Less: Tax at 40%
1.188
1,282.4
Net income (NI)
1,782
1,923.6
Balance sheet
Current assets:
2014
2015
Cash
4,129
5,223
Accounts receivable
5,459
6,147
Inventory
9,690
9,958
Total current assets
19,278
21,328
Net fixed assets
34,655
35,517
Total assets
53,933
56,845
Current liabilities:
Short-term notes payable
814
766
Accounts payable
4,356
4,205
Total current liabilities
5,170
4,971
Long-term debt
13,680
16,250
Total liabilities
18,850
21,221
Stockholder’s equity:
Retained earnings (NI – Dividends)
806
852.6
Common stock (Balance figure)
34,277
34,771.4
Total stockholder’s equity
35,083
35,624
Total liabilities and stockholder’s equity
53,933
56,845
Particulars
2014
2015
Sales
8,035
8,609
Less: Expenses:
Cost of goods sold
2,716
3,080
Depreciation
1,145
1,146
Other expenses
659
554
Interest
545
623
Net income before tax
2,970
3,206
Less: Tax at 40%
1.188
1,282.4
Net income (NI)
1,782
1,923.6