Prepare a bala se sheet and income statement for the Warner Company from the fol
ID: 2331762 • Letter: P
Question
Prepare a bala se sheet and income statement for the Warner Company from the following scrambled Given Data: Depreciation Expense Cash Long-Term Debt Sales Accounts Payable General & Administrat $66,000.00 S225,000.00 $334,000.00 $573,000.00 $102,000.00 $79,000.00 $895,000.00 $75,000.00 $167,500.00 $4,750.00 $7,900.00 $289,000.00 $297,000.00 $99,300.00 $50,500.00 $263,000.00 $53,000.00 $262,900.00 e Expense Notes Payable Accounts Receivable Common Stock Taxes Accumulated Depreciation Taxes Payable a. Prepare an income statement for the Warner Company Warner GC Cost of Goods Sold Expenses General & Administrative Expense Depreciation Expense Total Operating Expenses Net Operating Income Earnings Before Taxes Taxes Net Income
Explanation / Answer
Solution:
Part a & b
Warner Company
Income Statement
Sales
$573,000
Cost of Goods Sold
$297,000
Gross Profit
$276,000
Expenses
General & Administrative Expense
$79,000
Depreciation Expense
$66,000
Total Operating Expenses
$145,000
Net Operating Income
$131,000
Interest Expense
$4,750
Earnings Before Taxes
$126,250
Taxes
$50,500
Net Income
$75,750
Warner Company
Balance Sheet
Assets
Current Assets
Cash
$225,000
Inventory
$99,300
Accounts Receivable
$167,500
Total Current Assets
$491,800
Fixed Assets
Building & Equipment
$895,000
Less: Accumulated Depreciation
$263,000
Building & Equipment, net
$632,000
Total Assets
$1,123,800
Liabilities
Current Liabilities
Accounts Payable
$102,000
Taxes Payable
$53,000
Accrued Expenses
$7,900
Notes Payable
$75,000
Total Current Liabilities
$237,900
Long Term Debt
$334,000
Total Liabilities
$571,900
Shareholders' Equity
Common Stock
$289,000
Retained Earnings
$262,900
Total Shareholders' Equity
$551,900
Total Liabilities & Shareholders Equity
$1,123,800
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Warner Company
Income Statement
Sales
$573,000
Cost of Goods Sold
$297,000
Gross Profit
$276,000
Expenses
General & Administrative Expense
$79,000
Depreciation Expense
$66,000
Total Operating Expenses
$145,000
Net Operating Income
$131,000
Interest Expense
$4,750
Earnings Before Taxes
$126,250
Taxes
$50,500
Net Income
$75,750
Warner Company
Balance Sheet
Assets
Current Assets
Cash
$225,000
Inventory
$99,300
Accounts Receivable
$167,500
Total Current Assets
$491,800
Fixed Assets
Building & Equipment
$895,000
Less: Accumulated Depreciation
$263,000
Building & Equipment, net
$632,000
Total Assets
$1,123,800
Liabilities
Current Liabilities
Accounts Payable
$102,000
Taxes Payable
$53,000
Accrued Expenses
$7,900
Notes Payable
$75,000
Total Current Liabilities
$237,900
Long Term Debt
$334,000
Total Liabilities
$571,900
Shareholders' Equity
Common Stock
$289,000
Retained Earnings
$262,900
Total Shareholders' Equity
$551,900
Total Liabilities & Shareholders Equity
$1,123,800