And explain how you got the asnwers. Here are incomplete financial statements fo

Question

And explain how you got the asnwers.

Here are incomplete financial statements for Donavan, Inc. Calculate the missing amounts DONAVAN, INC. Balance Sheet Assets Cash Inventory Buildings Total assets $12,300 15,300 39,700 $67,300 Liabilities and Stockholders' Equity Liabilities $5,500 Accounts payable Stockholders' Equity Common stock Retained earnings Total liabities and stockholders' equity $67,300 DONAVAN, INC. Income Statement Revenues $85,900 Cost of goods sold Salaries and wages expense 10,310 Net Income DONAVAN, INC. Retained Earnings Statement $17,300 Beginning retained earnings Add: Net income Less: Dividends Ending retained earnings 4,160 $32,300

Explanation / Answer

Step:1 From the equation 1-

Account payable + Retained earnings + Common stock = Shareholders' equity + Liabilities

Putting the given amount, we can find the missing one-

Ending retained earning is given $32300

5500 + 32300 + Common stock = 67300

Common stock = $29500

Step: 2, Equation:2

Beginning retained earning + Net Income - Dividend = Ending retained earning

17300 + Net Income - 4160 = 32300

Net Income = $19160

Step: 3, Equation 3:

Revenue - Cost of goods sold - Salaries & Wages = Net Income

85900 - COGS - 10310 = 19160

COGS = $56430

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