Question

You are provided with the following information for Splish Brothers Inc., effective as of its April 30, 2017, year-end. $ 869 Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Cost of goods sold Depreciation expense Dividends Equipment Income tax expense Income taxes payable Insurance expense Interest expense Inventory Land Mortgage payable Notes payable Prepaid insurance Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Sales revenue Stock investments (short-term) 915 670 1,375 1,215 1,095 300 360 2,525 200 170 245 435 1,072 3,205 3,605 166 95 1,600 665 257 5,205 1,270

Answer 1

Answer-

SPLISH BROTHERS INC.
INCOME STATEMENT
FOR THE YEAR ENDED APRIL 30,2017
PARTICULARS		AMOUNT
		$
Net sales revenue		5205
Less- Cost of goods sold		1095
Gross profit		4110
Less- Operating expenses
Salaries & wages expense	665
Depreciation expense	300
Insurance expense	245
Total operating expenses		1210
Income before interest & income tax expense		2900
Less- Interest		435
Income before income tax expense		2465
Less- Income tax expense		200
Net income		2265

SPLISH BROTHERS INC.
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED APRIL 30,2017		Amount
		$
Retained earnings April 30 prior year end		1600
Add- Net income		2265
Less- Dividends		360
Retained earnings, April 30 Current year end		3505

SPLISH BROTHERS INC.
BALANCE SHEET
APRIL 30,2017
Assets		Amount
		$
Current Assets		4727
Cash	1375
Accounts receivable	915
Inventory	1072
Stock investments	1270
Prepaid insurance	95
Non Current Assets
Equipment	2525
Less- Accumulated depreciation	670	1855
Land		3205
Total Assets		9787
Liabilities
Current liabilities		1462
Accounts payable	869
Notes payable	166
Salaries & wages payable	257
Income taxes payable	170
Long-term liabiliities
Mortgage payable		3605
Shareholder equity		4720
Capital stock	1215
Retained earnings	3505
Total liabilties and shareholder equity		9787