Question

prepare an income statement of changes in stockholders equity

S Accounts receivable Accumulated depreciation Cost of goods sold Income tax expense Cash Sales Equipment Selling general, and administrative expenses Common stock 8.700 shares) Accounts payable Retained w ings, 1/1/16 Interest expense Merchandise inventory Long-term debt Dividends declared and paid during 2016 101500 50.100 12 000 9000 52 500 195.000 123000 3 000 98000 10.500 28 800 5 5 40.000 9 200 Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year ended December 31, 2016. There were no changes in paid in capital during the year Required: a. Prepare an income statement and statement of changes in stockholders equity for the year anded December 31, 2010, and a balance sheet at December 31, 2016, for Brava, Inc Based on the financial statements that you have prepared for part a nswer the questions in parts be BREANNA, INC. Income Statement For the Year Ended December 31, 2016

Answer 1

a. Income Statement:-

Particulars	Amount$
Revenue:-
Sales	195000
Less:- Cost oF Goods Sold	(128000)
Gross Profit	67000
Less:- Operating Expenses
Selling, General & Administrative Expenses	(34000)
Net Profit Before Interest and Tax	33000
Less:- Interest Expense	(5600)
Net Profit After Interest but before Tax	27400
Less:- Income Tax Expense	(9000)
Net Profit after Tax	18400

Statement of changes in stockholders equity:-

Particulars	Common Stock$	Retained Earnings $
Opening Balance	96000	28800
Net Profit after Tax		18400
Dividend paid		(9200)
Closing Balance	96000	38000

Balance sheet as on 31st December 2016

Liabilities	Amount $	Assets	Amount $
Common Stock	96000	Accounts Receivable	10600
Retained Earnings	38000	Cash	62500
Accounts Payable	10500	Equipment 123000 Less:- Accumulated Depreciation(50100)	72900
Long Term Debt	40000	Merchandise Inventory	38500
Total Liabilities	184500	Total Assets	184500