Question

The following are accounts balance (in thousands) for Malak Company. Prepare a balance sheet, and Income statement using intermediate steps t=35% for the year ended December 31, 2018.

Net property and equipment	$ 2,000
Accounts receivable	$3,000
Notes payable	$37,000
Revenues	$ 983,000
Supply expenses	$ 255,000
Depreciation expenses	$ 35,000
Labor expense	$300,000
Interest Expenses	$11,000
Stockholders’ Equity	$61,500
Cash & cash equivalents	$97,000
Long-term debt	$3,500

Please don't use a hand written i can not understand it.

Answer 1

Prepare the income statement, using MS-excel as shown below:

- B Income Statement 4 Particulars | Amount 5 Revenues 983000 6 Expenses: Supply expenses 255000 8 Depreciation expenses 35000 Labor expenses 300000 Interest expenses 11000 Total expenses =SUM(C7:C10) 12 Profit before tax =C5-C11 13 Tax =C12*35% 14 15 Net income =C12-C13 30000 10

The result of the above excel table is as follows:

В. Income Statement Particulars Amount Revenues $ 983,000 6 Expenses: 7 Supply expenses $ 255,000 | 8 Depreciation expenses $ 35,000 Labor expenses $ 300,000 10 Interest expenses $ 11,000 11 Total expenses $ 601,000 Profit before tax $ 382,000 13 Tax $ 133,700 14 15 Net income $ 248,300 12 D

Hence, the net income of the company is $248,300.

Prepare the balance sheet of the company, using MS-excel as shown below:

2000 G H 4. Balance Sheet 5 Particulars Amount Amount 6 Fixed assets: 7 Net preporty and equipment 2000 8 Current assets: 9 Accounts receivables 3000 10 Cash and cash equivalents =97000+C15|| 11 Total current assets =SUM(G9:G10) 12 Total assets =H7+H11 13 Liabilities 14 Notes payables 37000 15 Long-term debts 16 Total liabilities =SUM(G14:G15) 17 Equity: 18 Shareholders equity 61500 19 Retained earnings 248300 Total equity =SUM(G18:G19) 21 Total liability and equity =H16+H20 3500 20

The result of the above excel table is as follows:

F G H Balance Sheet 5 Particulars Amount Amount 6 Fixed assets: 7 Net preporty and equipment $2,000 $2,000 8 Current assets: 9 Accounts receivables $3,000 10 Cash and cash equivalents $ 345,300 11 Total current assets $ 348,300 12 Total assets $ 350,300 13 Liabilities 14 Notes payables $ 37,000 15 Long-term debts $ 3,500 16 Total liabilities $ 40,500 17 Equity: 18 Shareholders equity $ 61,500 Retained earnings $ 248,300 20 Total equity $ 309,800 21 Total liability and equity $ 350,300 19

Hence, the total of the balance sheet is $350,300

Note:

It is assumed that all sales are on cash basis.