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Income Statement Balance Sheet Year-Ended 12/31/04 12/31/04 12/31/03 Sales $1,50

ID: 2637505 • Letter: I

Question

Income Statement                                              Balance Sheet

Year-Ended 12/31/04                                                                                         12/31/04              12/31/03              

Sales                                       $1,500,000           Current Assets                         $50,000              $ 35,000              

Cost of Good Sold                    700,000            Gross Fixed Assets               1,100,000              750,000              

Operating Expenses                 400,000            Net Fixed Assets                     450,000              300,000

Depreciation                              200,000            Total Assets                            500,000              335,000

Operating Income                    200,000            Current Liabilities            $     25,000                $ 30,000              

Interest Expense                        50,000            Long-term debt                        340,000             230,000

Taxable Income                       150,000            Common Stock                           5,000                    5,000

Taxes                                            45,000            Retained Earnings                   130,000                 70,000

Net Income                           $   105,000            Total Liab. & Equity            500,000             335,000

7.     Given these financial statements, what is the company

Explanation / Answer

Sales $1,500,000.00 Cost of Goods Sold $700,000.00 Operating Expense $400,000.00 Depreciation $200,000.00 Operating Income $200,000.00 Interest Expense $50,000.00 PBT $150,000.00 Less: Tax $45,000.00 PAT $105,000.00 Cash Flow Statement Net Income $105,000.00 Add: Depreciation $200,000.00           Interest $50,000.00 After tax Cash flow from Operation $355,000.00