Question

QUESTION 2 repare a balance sheet and an income statement for Cucki Company for the year 2017 from the following information: Accounts payable Cash 57,000 14,000 Long term debt Marketable securities 150,000 6,200 600.00 Sales Taxes (40%) Prepaid rent Accounts receivable Depreciation COGS Interest expenses Inventory 1,100 33,000 30,000 460,000 10.000 84,000 General and administrative expenses 30,000 Accumulated depreciation Accruals Notes payable 30,000 5,000 13,000 Cemmon stockholders, equity183,300

Answer 1

Solution:

Income Statement

Cucki Company
Income Statement for the year 2017
	RM
Sales	600,000
Less: COGS	460,000
Gross Margin	140,000
Other Expenses:
Depreciation	30,000
General and administrative expenses	30,000
Total Other Expenses	60,000
Income before interest and taxes	80,000
Less: Interest Expense	10,000
Income before tax	70,000
Less: Income taxes @ 40%	28,000
Income after taxes	42,000

Balance Sheet

Cucki Company
Balance Sheet at the year ended 2017
Assets:
Current Assets:
Cash	14,000
Marketable Securities	6,200
Accounts Receivable	33,000
Inventory	84,000
Prepaid Rent	1,100
Total Current assets		138,300
Non Current Assets:
Plant and equipment	300,000
Less: Accumulated Depreciation	(30,000)
Net Plant and Equipment		270,000
Total Assets		408,300
Equity & Liabilities
Current Liabilities:
Accounts Payable	57,000
Accruals	5,000
Total Current Liabililities		62,000
Long Term Borrowings:
Long term Debt	150,000
Notes Payable	13,000	163,000
Total Liabilities		225,000
Owner's Equity:
Common stockholder's equity	183,300
Total Owner's Equity		183,300
Total Equity and Liabilities		408,300

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