Prepare an Income Statement from the following information for Get Well Partners
ID: 2423704 • Letter: P
Question
Prepare an Income Statement from the following information for Get Well Partners for the year ended December 31, 2014. Salaries expense $ 35,000 Administrative expense $ 12,000 Interest expense $ 5,200 Patient service revenue $ 112,000 Income tax expense $ 17,000 Rent expense $ 23,000 Other Revenue $ 9,000 Bad debt expense $ 10,080 Prepare a Balance Sheet from the following information for the year ended December 31, 2014: Long term debt $ 500,000 Cash $ 61,000 Allowance for bad debts $ 75,000 Wages Payable $ 43,000 Accounts receivable $ 425,000 Accumulated depreciation $ 350,000 Inventories $ 110,000 Gross Plant & Equipment $ 1,140,000 Accounts Payable $ 37,000 Prepaid rent $ 8,000 Increase in (Unrestricted) Net Assets $ 159,000 Beginning balance, temporarily restricted net assets $ 70,000 Net assets released from temporary restriction $ 22,000 Beginning balance, unrestricted net assets $ 475,000 Ending balance, permanently restricted net assets $ 35,000 Prepare an Income Statement from the following information for Get Well Partners for the year ended December 31, 2014. Salaries expense $ 35,000 Administrative expense $ 12,000 Interest expense $ 5,200 Patient service revenue $ 112,000 Income tax expense $ 17,000 Rent expense $ 23,000 Other Revenue $ 9,000 Bad debt expense $ 10,080 Prepare a Balance Sheet from the following information for the year ended December 31, 2014: Long term debt $ 500,000 Cash $ 61,000 Allowance for bad debts $ 75,000 Wages Payable $ 43,000 Accounts receivable $ 425,000 Accumulated depreciation $ 350,000 Inventories $ 110,000 Gross Plant & Equipment $ 1,140,000 Accounts Payable $ 37,000 Prepaid rent $ 8,000 Increase in (Unrestricted) Net Assets $ 159,000 Beginning balance, temporarily restricted net assets $ 70,000 Net assets released from temporary restriction $ 22,000 Beginning balance, unrestricted net assets $ 475,000 Ending balance, permanently restricted net assets $ 35,000Explanation / Answer
Answer :
Get Well Partner Income Statement, December 31, 2014 Particulars Amount ($) Patient Service Revenue 112000 Other Revenue 9000 Total Revenue 121000 Less : Salary Expenses 35000 Administrative Expenses 12000 Rent Expenses 23000 Bad Debts Expenses 10080 Total Expenses 80080 EBIT 40920 Interest Expenses 5200 EBT 35720 Income Tax Expenses 17000 Net Income 18720 Get Well Partner Balance Sheet, December 31, 2014 Assets Amount ($) Cash 61000 Account Receivable 425000 Inventories 110000 Prepaid Rent 8000 Total Current Assets 604000 Gross Plant & Equipment 1140000 Accumulated Depreciation -350000 Total Fixed Assets 790000 Total Assets 1394000 Liabilities Wages Payable 43000 Allowance for Bad Debts 75000 Account payable 37000 Total Current Liabilities 155000 Long term Debt 500000 Total Long Term Liabilities 500000 Unrestricted Net Assets (475000+159000) 634000 Permanently Restricted Net Assets 35000 Temporary Restricted Net Assets 70000 Total liabilities & Net Assets 1394000