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#1

Assignment 1.5 Exercises
Problem 1: Building an Income Statement 5 Points
Viola's Medical Supplies, Inc., had product sales of $817,000 and rental sales of $121,000 for 2019. The cost of the products sold was $389,000. In addition, the company incurred $143,000 in expense for its workers, $14,000 for utilities, and $83,000 to lease its warehouse space. Viola was paid $85,000 for his management of the business. The company purchased $80,000 of new equipment during the year. Depreciation of warehouse equipment was $51,000, and interest expense on the company's credit line was $38,000. The company has an effective tax rate of 21 percent.
Complete the full Income Statement for Viola's Medical Supplies. What is the Net Income for this firm?
Use the Template Provided Below to Create Your Solution - Pay close attention to the formulas and formatting of the inputs.
Input area:
Product Sales ($)
Rental Sales ($)
Cost of Goods Sold ($)
Wages Expense ($)
Utilities Expense ($)
Warehouse Lease ($)
Management Salaries ($)
Depreciation expense ($)
Interest expense ($)
Tax rate (%)
Output area:
Viola's Medical Supplies, Inc.
Income Statement
For Year Ended Dec 31st, 2019
Product Sales Revenue $ - 0
Rental Sales Revenue - 0
Total Revenue $ - 0
Expenses:
Costs of Goods Sold $ - 0
Wages Expense -
Utilities Expense -
Warehouse Expense -
Management Salaries -
Depreciation expense - 0
EBIT $ -
Interest expense -
EBT $ - 0
Taxes (0%) -
Net income $ - 0
This is the Student Template file, provided in the assignment instructions October 2019

#2

Assignment 1.5 Exercises
Problem 2: Building a Balance Sheet 5 Points
As of January 31st, 2020, Spooner Company owes its suppliers $1070, and owes its employees $1420 in future wages. The company has $8400 in cash on hand and is storing $5470 of inventory. Equipment worth $27,000, net of accumulated depreciation, is supporting the operation. The company also has an outstanding loan to its local bank of $15,000. Sales in 2019 was $432,000.
Complete the full Balance Sheet for Spooner Company. What is the Owner's Equity for this firm?
Use the Template Provided Below to Create Your Solution - Pay close attention to the formulas and formatting of the inputs.
Input area:
Accounts Payable ($)
Wages Payable ($)
Cash ($)
Inventory ($)
Net Fixed Assets ($)
Bank Loan ($)
Output area:
Spooner Company
Balance Sheet
January 31st, 2020
Current Assets: Current Liabilities:
Cash $ - 0 Accounts Payable $ - 0
Inventory - Wages Payable -
Total Current Assets $ - 0 Total Current Liabilities $ - 0
Net Fixed Assets - Long-Term Debt -
Owner's Equity $ - 0
Total Assets $ - 0 Total Liabilities and Equity -
This is the Student Template file, provided in the assignment instructions October 2019

#3

Assignment 1.5 Exercises
Problem 3: Building an Income Sheet 10 Points
The following financial data has been provided for Twanger Building Supply, Inc.:
Cost of goods sold $ 983,095
Cash 141,860
Depreciation 277,530
Interest expense 60,335
Selling & Administrative Expenses 193,340
Accounts payable 100,715
Net fixed assets 1,224,405
Sales 1,928,620
Accounts receivable 100,520
Short-term Notes payable 114,275
Long-term debt 618,035
Inventory 193,530
Intangible Assets 223,450
Wages Payable 21,780
Common Stock 1,750
Additional Paid-In Capital 291,680
Retained Earnings 735,530
Tax Rate (average) 30%
All data is for the year ended Dec 31st, 2019.
Complete the full Income Statement for Twanger Building Supply. What is the Net Income for this firm?
Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.
This is the Student Template file, provided in the assignment instructions October 2019

#4

Assignment 1.5 Exercises
Problem 4: Building a Balance Sheet 10 Points
The following financial data has been provided for Twanger Building Supply, Inc.:
Cost of goods sold $ 983,095
Cash 141,860
Depreciation 277,530
Interest expense 60,335
Selling & Administrative Expenses 193,340
Accounts payable 100,715
Net fixed assets 1,224,405
Sales 1,928,620
Accounts receivable 100,520
Short-term Notes payable 114,275
Long-term debt 618,035
Inventory 193,530
Intangible Assets 223,450
Wages Payable 21,780
Common Stock 1,750
Additional Paid-In Capital 291,680
Retained Earnings 735,530
Tax Rate (average) 30%
All data is for the year ended Dec 31st, 2019.
Complete the full Balance Sheet for Twanger Building Supply. What is the total Owner's Equity for this firm?
Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.
This is the Student Template file, provided in the assignment instructions October 2019

#5

Assignment 1.5 Exercises
Problem 5: Sources and Uses 5 Points
Summary data for Hummer Corp.'s Assets, Liabilities, and Equity is given below (in $ millions):
2018 2019
Current Assets $ 2,866 $ 3,228
Fixed Assets 1,855 1,863
Current Liabilities 1,065 1,618
Long Term Debt 1,992 1,610
Shareholders’ Equity 1,664 1,863
All data is for the fiscal year ending Dec 31st.
Complete a Sources and Uses Statement for Hummer Corp.
Use the Template Provided Below to Create Your Solution - Pay close attention to the formulas and formatting of the inputs.
Input area:
Hummer Corp.
Balance Sheet ($ millions)
2018 2019 Change
Current Assets $ -
Fixed Assets -
Total Assets - - -
Current Liabilities -
Long Term Debt -
Shareholders’ Equity -
Total Liabilities and Equity - - -
Output area:
Hummer Corp.
Sources and Uses Statement
December 31st, 2019 ($ millions)
Sources:
Increase in Current Liabilties $ - 0
Increase in Shareholder's Equity -
Total Sources -
Uses:
Increase in Current Assets -
Increase in Fixed Assets -
Decrease in Long-Term Debt -
Total Uses -
This is the Student Template file, provided in the assignment instructions October 2019

#6

Assignment 1.5 Exercises
Problem 6: Sources and Uses 5 Points
A Balance Sheet for Whistler Corp. is given below:
Whistler Corporation
Balance Sheets
For Years Ended December 31st
2018 2019 Change
Cash $ 47,500 $ 76,700 $ 29,200
Accounts receivable $ - $ 43,100 $ 43,100
Inventories $ 49,000 $ 36,500 $ (12,500)
Total Current Assets $ 96,500 $ 156,300 $ 59,800
Land $ 15,800 $ 15,800 $ -
Buildings $ 103,600 $ 164,600 $ 61,000
Equipment $ 52,400 $ 53,300 $ 900
Patents $ 5,200 $ 5,200 $ -
Total Long-Term Assets $ 177,000 $ 238,900 $ 61,900
Total assets $ 273,500 $ 395,200 $ 121,700
Accounts payable to suppliers $ 48,000 $ 25,900 $ (22,100)
Income taxes payable $ - $ 10,700 $ 10,700
Total current liabilities $ 48,000 $ 36,600 $ (11,400)
Long term debt $ 100,100 $ 134,000 $ 33,900
Total liabilities $ 148,100 $ 170,600 $ 22,500
Common stock $ 125,400 $ 177,400 $ 52,000
Retained earnings $ - $ 47,200 $ 47,200
Total shareholders’ equity $ 125,400 $ 224,600 $ 99,200
Total Liabilities and Equity $ 273,500 $ 395,200 $ 121,700
Complete a Sources and Uses Statement for Whistler Corp.
Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.
This is the Student Template file, provided in the assignment instructions October 2019

#7

Assignment 1.5 Exercises
Problem 7: Cash Flow Statement 5 Points
Balance Sheets and an Income Statement for Bongo Company are provided below (in $ millions):
Bongo Company Bongo Company
Balance Sheet ($ millions) Income Statement ($ millions)
December 31st For Year Ended December 31st, 2019
2018 2019 Change
Cash $ 1,270 $ 1,869 $ 599 Net Sales $ 6,526
Accounts Receivable 1,584 1,716 132 Cost of Goods Sold 2,900
Other Current Assets 872 814 (58) Selling and Admin Expenses 2,359
Total Current Assets 3,726 4,399 673 Depreciation 202
EBIT (Operating Income) 1,065
Property, Plant, & Equipment 1,275 1,360 85
Intangible Assets 1,136 1,062 (74) Interest Expense 126
Less: Accumulated Depreciation 240 442 202 Other Non-Operating Expenses 78
Total Fixed Assets 2,171 1,980 (191) EBT (Taxable Income) 861
Total Assets 5,897 6,379 482 Income Taxes 276
Net Income 585
Accounts Payable 313 416 103
Other Short-Term Debt 831 1,246 415 Dividends Paid 154
Total Current Liabilities 1,144 1,662 518 Addition to Retained Earnings 431
Long Term Debt 2,590 2,093 (497)
Common Stock 210 240 30
Retained Earnings 1,953 2,384 431
Shareholders’ Equity 2,163 2,624 461
Total Liabilities and Equity 5,897 6,379 482
Create a Cash Flow Statement for Bongo Company. Be careful of the direction of the cash flows (source or use).
Use the Template Provided Below to Create Your Solution - Pay close attention to the formulas and formatting of the inputs.
Input / Output area:
Bongo Company
Statement of Cash Flows ($ millions)
For Year Ended December 31st, 2019
Cash Flows from Operating Activities
Net Income
Add Back Depreciation
(Increase) Decrease in Accounts Receivable
(Increase) Decrease in Other Current Assets
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Short-Term Debt
Cash Flow from Operations -
Cash Flows from Investing Activities
(Increase) Decrease in Property, Plant, Equipment
(Increase) Decrease in Intangible Assets
Cash Flow from Investing -
Cash Flows from Financing Activities
Increase (Decrease) in Long-Term Debt
Increase (Decrease) in Common Stock
Subtract Dividends Paid
Cash Flow from Financing -
Net Increase (Decrease) in Cash -
Cash at Beginning of Year
Cash at End of Year
Net Change in Cash -
This is the Student Template file, provided in the assignment instructions October 2019

#8

Assignment 1.5 Exercises
Problem 8: Cash Flow Statement 5 Points
Balance Sheets and an Income Statement for Whistler Corporation are provided below (in $ thousands):
Whistler Corporation Whistler Corporation
Balance Sheet ($ thousands) Income Statement ($ thousands)
December 31st For Year Ended December 31st, 2019
2018 2019 Change
Cash $ 47,500 $ 76,700 $ 29,200 Net Sales $ 165,300
Accounts Receivable - 43,100 43,100 Cost of Goods Sold 46,200
Inventories 49,000 36,500 (12,500) Depreciation 1,400
Total Current Assets 96,500 156,300 59,800 EBIT (Operating Income) 117,700
Land 15,800 15,800 - Interest Expense 2,000
Buildings 103,600 164,600 61,000 Other Non-Operating Expenses 5,600
Equipment 63,200 65,500 2,300 EBT (Taxable Income) 110,100
Patents 5,200 5,200 -
Less: Accumulated Depreciation 10,800 12,200 1,400 Income Taxes 40,900
Total Fixed Assets 177,000 238,900 61,900 Net Income 69,200
Total Assets 273,500 395,200 121,700 Dividends Paid 22,000
Addition to Retained Earnings 47,200
Accounts Payable 48,000 25,900 (22,100)
Income Taxes Payable - 10,700 10,700
Total Current Liabilities 48,000 36,600 (11,400)
Long Term Debt 100,100 134,000 33,900
Common Stock 125,400 177,400 52,000
Retained Earnings - 47,200 47,200
Shareholders’ Equity 125,400 224,600 99,200
Total Liabilities and Equity 273,500 395,200 121,700
Create a Cash Flow Statement for Whistler Corporation.
Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers.
This is the Student Template file, provided in the assignment instructions October 2019