Question

In-Class Case #2A Chapter 2 Given the following information, prepare an Income Statement, a Retained Earnings Statement, and a Classified Balance Sheet for Einstein Company. Cash Short-Term Investments Accounts Receivable Inventory Other Current Assets Property, Plant, and Equipment Other Long-Term Assets Accounts Payable Notes Payable (due in 90 days) Accrued and Other Current Liabilities Long-Term Debt Other Long-Term Liabilities Common Stock Revenue/Sales Cost of Goods Sold Operating Expenses Income Tax Expense Retained Earnings, Beginning Dividends $13,911 $18 $12.454 $6,877 $10,074 $6,451 $27,532 $10,223 $1,831 $19,406 $3,392 $5,289 $20,518 $86,766 $66,440 $16,783 $1,145 $18,260 $4,000

Answer 1

Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating expenses Income Before Tax Income Tax Expense Net Income (loss) $86,766 $66,440 $20,326 $16,783 $3,543 $1,145 $2,398 Retained Earnings Statement Retained Earnings, Beginning Add: Net Income (loss) for the year $18,260 $2,398 $20,658 $4,000 $16,658 Less: Dividend Retained Earnings, Ending Balance Sheet Asets Current Assests Cash Short-Term Investments Accounts Receivable Inventory Other Current Assets Total current assets $13,911 $18 $12,454 $6,877 $10,074 S43,334 Property, plant, and equipment Other Long-Term Assets Total Assets $6,451 $27,532 $77,317 $10,223 $1,831 $19,406 $31,460 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Notes Payable (due in 90 days) Accrued and Other Current Liabilties Total Current Liabilities Long Term Liabilities Long-Term Debt Other Long-Term Liabities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $3,392 $5.289 $40,141 $20,518 $16,658 $37,176 $77,317