Question

i need help on my retained earnings and income statement. i have a income tax rate of 20% and my RE ending has to be 361,000. not sure what i am missing on my income statement

here are some updated pictures

Answer 1

XYZ Company 39 40 Income Statement For the Year ending Dec. 31,2018 41 Sales Revenue 42 778,000 Less Sales Discount 5,000 43 Net Sales Revenue 44 773,000 Cost of Goods Sold 45 200,000 Gross Profit 573,000 46 47 Operating Expenses; Sales expenses 48 150,000 General Adminstrative expenses 49 250,000 Total Operating Expenses 50 400,000 Operating Income Other Income (Expenses) 173,000 51 52. 53 Interest Revenue 20,000 Dividend Revenue 54 15,000 Gain on Sale of Equipment 55 7,000 (22,000) 56 Interest expense Loss on sale of Investment (5,000) 57 Total Other Income (Expenses) 58 15,000 Income Before Tax 59 188,000 Less Tax expense 60 37,600 Income after Tax 61 150,400 Less Discontinued Operations (net of tax) (15,000) 62 63 Net Income 135,400

XYZ Company 65 Statement of Retained Earnings 66 For the Year ending Dec. 31, 2018 67 Beginning Balance of Retained Earnings 68 200,000 Add Net Income 69 135,400 70 135,400 Ending Balance of Retained Earnings 71 335,400 72 XYZ Company 73 Classified Balance sheet 74 As on Dec. 31,2018 75 76 Assets 77 Current Assets Cash 78 10,000 Short term Marketable securities 79 12,000 Accounts Receivable 80 15,000 81 Inventory 25,000 Prepaid Rent 82 24,000 Prepaid Insurance 83 12,000 Total Current Assets 84 98,000 85 Long term Investments; 86 Long Term Marketable Securities 50,000 Land held for future use 87 100,000 Debt Service Fund 88 50,000 Total Long Term Investments 89 200,000

Property ,Plant and Equipment; 90 Land in use 120,000 91. Buildings 92 700,000 Acumulated Depreciation Building Machinery & Equipment (200,000) 93 250,000 94 Less ;Accumulated Depreciation-achinery & Equipment (50,000) 95 Total Property,Plant and Equipment Intanible Assets 96 820,000 97 98 Patents 75,000 Copyrights 99 30,000 Trademark 100 10,000 Franchise 101 25,000 Copper Mine Less ;Accumulated Depreciation -Copper Mine 102 300,000 (75,000) 103 Total Intangible Assets 104 365,000 Other Assets 105 106 Long Term Deferred Tax Asset 60,000 Long Term Pension Asset Total Other Assets 107 100,000 108 160,000 Total Assets 109 1,643,000 110

Liabilities and Stockholder's Equity 111 Current Liabilities; 112 Accounts Payable Income Tax Payable 17,000 113 114 100,600 Notes Payable (due in 6 months) Interest Payable 115 50,000 116 25,000 Current Portion of Mortgage Payable 117 20,000 Total Current Liabilities 212,600 118 Long Term Liabilities; 119 Mortgage Payable Notes Payable (due in 2 Years) Total Long Term Liabilities 120 380,000 530,000 121 150,000 742,600 122 Total Liabilities 123 Stockholder's Equity; Paid In Capital 124 125 Preferred Stock 126 50,000 Common Stock 127 100,000 Additional Paid In Capital 128 Paid In Capital in excess of Par Preferred Stock 129 100,000 Paid In Capital in excess of Par - Common Stock Total Paid In Capital 130 300,000 131 550,000 Retained Earnings 132 335,400 Total Paid In Capital &Retained Earnings 133 885,400 Accumulated Other Comprehensive Income 134 25,000 Less Treasury Stock (10,000) 135

Total Shareholder's Equity 136 900,400 Total Liabilities and Shareholder's Equity 137 1,643,000 138