The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies, has provided you the following information from his company's accounting records. From the information presented, prepare a properly formatted, multi-step Income Statement (be sure to show intermediate profit lines - Gross Profit, EBITDA, NOI, EBIT, EBT and NI - as necessary). Per share presentation of income data is not being requested. Balance sheet account information is as of the close of business for December 31, 2017 unless otherwise indicated. Income statement information is applicable for the entire calendar year 2017 unless otherwise indicated. The company's income tax rate is 35%. The company did not purchase or dispose of any depreciable long-term assets. (Watch out - you have more information than is needed to complete this problem).
Sales/Revenues |
$600,000 |
Property Tax Expense |
70,000 |
Cash |
10,000 |
Marketing Expenses |
30,000 |
Warranty Liability |
15,000 |
Prepaid Insurance |
10,000 |
General and Administrative Expenses |
35,000 |
Purchases of Goods for sale |
75,000 |
Inventory available for sale as of 1/1/2017 |
120,000 |
Inventory available for sale as of 12/31/2017 |
95,000 |
Accum. Depreciation on Plant, Property, Equipment (as of 1/1/17) |
120,000 |
Accum. Depreciation on Plant, Property, Equipment (as of 12/31/17) |
160,000 |
Plant, Property and Equipment |
500,000 |
Long-term debt |
50,000 |
Dividends declared and paid to shareholders by Fin |
40,000 |
Dividend Income |
42,000 |
Interest Income |
3,000 |
Interest Expense |
12,000 |
Net Accounts Receivable |
15,000 |
Retained Earnings |
60,000 |
Accounts Payable |
15,000 |
Bad Debt Expense |
5,000 |
Fin Tackle
Company Income Statement For the year ended December 31, 2017 |
||
Sales / Revenues | $ 600,000 | |
Cost of Goods Sold | ||
Beginning inventory | $ 120,000 | |
Add: Purchases | 75,000 | |
Less: Ending inventory | (95,000) | 100,000 |
Gross Profit | 500,000 | |
General and Administrative Expenses | 35,000 | |
Marketing Expenses | 30,000 | |
Property Tax Expense | 70,000 | |
Bad Debt Expense | 5,000 | 140,000 |
EBITDA | 360,000 | |
Depreciation Expense | 40,000 | |
EBIT | 320,000 | |
Interest Expense | 12,000 | |
Net Operating Income ( NOI ) | 308,000 | |
Other Income | ||
Interest Income | 3,000 | |
Dividend Income | 42,000 | 45,000 |
Income before Taxes | 353,000 | |
Income Tax Expense ( 35 % ) | 123,550 | |
Net Income ( NI ) | $ 229,450 |
The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies, has provided you the...
Self-Assessment Quiz Financial Statements Income Statement Sell Assessment Quiz Financial Information All values are end of year unless otherwise stated Accounts Payable 12,000 Accounts Receivable 10,000 Accruals 10,000 Accumulated Depreciation 100,000 Beginning of year Inventory 50,000 Beginning of year Retained Earnings 120.000 Cash 7.000 Common Stock 121,500 Cost of Goods Sold 200,000 Current Portion - Long Term Debt 1,500 Depreciation Expense 25,000 Dividends 40,000 Gross Property, plant, and Equipment 400,000 Interest Expense 15,000 Long Term Debt (excluding current portion) 120,000...
Using the following financial information, create an income statement reflecting business activity during the year, and a balance sheet reflecting the firm's end-of-year financial position. Financial Information All values are end-of-year unless otherwise stated Accounts Payable 12,000 Accounts Receivable 10,000 Accruals 10,000 Accumulated Depreciation 100,000 Beginning-of-year Inventory 50,000 Beginning-of-year Retained Earnings 120,000 Cash 7,000 Common Stock 121,500 Cost of Goods Sold 200,000 Current Portion of Long Term Debt 1,500 Depreciation Expense 25,000 Dividends 40,000 Gross Property, Plant, and Equipment 400,000...
Prepare a Statement of Cash Flows using the direct method. Use
the following information:
The following information is available for 2017.
Equipment (cost $10,000 and accumulated depreciation $4,000)
was sold for $7,000. All other changes in Property, Plant and
Equipment accounts relate to purchases and depreciation expense,
respectively.
Intangible Assets costing $10,000 were purchased during
2017.
There were $25,000 in payments on the Bonds Payable during
2017
12/31/2016 Closing Trial Balance 55,000 70,000 (4,000) 80,000 9,000 - Cash Accounts Receivable...
Nash Inc., a greeting card company, had the following statements prepared as of December 31, 2017. NASH INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 Accounts payable $45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017. BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) 35,000 18,000 Inventory 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation—equipment (35,000 ) (25,000 ) Copyrights 46,000 50,000 Total assets $313,000 $295,000 Accounts payable $46,000 $40,000 Income taxes payable 4,000 6,000 Salaries and wages payable 8,000...
Metlock Inc., a greeting card company, had the following statements prepared as of December 31, 2017. METLOCK INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $7,100 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) 35,000 18,100 Inventory 40,400 59,900 Prepaid rent 5,000 4,000 Equipment 153,300 129,100 Accumulated depreciation—equipment (35,000 ) (24,800 ) Copyrights 46,300 50,300 Total assets $312,900 $294,700 Accounts payable $46,500 $40,200 Income taxes payable 4,100 6,100 Salaries and wages payable 8,100...
Flint Inc., a greeting card company, had the following statements prepared as of December 31, 2017. FLINT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100 $6,900 Accounts receivable 61,900 50,500 Short-term debt investments (available-for-sale) 34,800 18,200 Inventory 39,900 59,800 Prepaid rent 4,900 4,000 Equipment 155,500 131,200 Accumulated depreciation equipment (34,800) (25,300 ) Copyrights 45,700 50,200 Total assets $314,000 $295,500 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans...
Sweet Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SWEET INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $6,900 $6,000 Cash Accounts receivable 62,500 50,900 Short-term debt investments (available-for-sale) 35,200 17,900 40,300 59,500 Inventory Prepaid rent 4,900 4,100 Equipment 153,100 129,600 Accumulated depreciation-equipment (35,200) (24,700) 50,500 Copyrights 45,600 Total assets $312,400 $294,700 Accounts payable $45,500 $40,000 Income taxes payable 4,000 6,100 Salaries and wages payable 8,000 3,900 Short-term...
Marin Inc., a greeting card company, had the following statements prepared as of December 31, 2017 MARIN INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $7,000 Accounts receivable 61,500 51,400 Short-term debt investments (available-for-sale) 35,400 17,800 Inventory 39,900 60,400 Prepaid rent 4,900 3,900 Equipment 155,300 131,000 Accumulated depreciation-equipment (34,700 ) (25,200) Copyrights 45,900 49,900 Total assets $314,100 $296,200 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable...
Exercise 23-13
Indigo Inc., a greeting card company, had the following statements
prepared as of December 31, 2017.
INDIGO INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
12/31/17
12/31/16
Cash
$6,100
$7,100
Accounts receivable
62,400
51,000
Short-term debt investments (available-for-sale)
34,700
18,100
Inventory
40,400
60,300
Prepaid rent
4,900
4,000
Equipment
154,100
130,600
Accumulated depreciation—equipment
(34,900
)
(24,800
)
Copyrights
46,400
49,800
Total assets
$314,100
$296,100
Accounts payable
$46,500
$40,200
Income taxes payable
4,000
6,000
Salaries and wages...