Economics
casey7677
Chapter14FinancialDocuments.docxBalance Sheet
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Assets
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Liabilities and Owner Equity |
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Current Assets |
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Current Liability |
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Cash |
$17,000 |
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Accounts and notes payable |
$53,000 |
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Accounts Receivable |
$30,000 |
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Accrued taxes payable |
$1,750 |
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Inventories |
$127,000 |
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Installments on long-term debt due this year |
$35,200 |
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Total Current Assets |
$174,000 |
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Total Current Liabilities |
$89,950 |
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Fixed Assets |
$250,000 |
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Long-term Liabilities |
$320,050 |
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Buildings and Equipment |
$660,000 |
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Total Liabilities |
$410,000 |
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Less: Depreciation |
$170,000 |
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Total Fixed Assets |
$740,000 |
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Owner Equity |
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Other Investments |
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Cash Value of Life Insurance |
$6,600 |
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Investment in other firms |
$24,400 |
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Investment in subsidiary |
$75,000 |
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Total Other |
$106,000 |
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TOTAL ASSETS |
$1,020,000 |
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Total Liabilities + Owner Equity |
$1,200,000 |
2
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Revenue from sales |
$1,465,000 |
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Less: Cost of goods sold |
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Inventory, January 1 |
$151,000 |
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Plus: Goods purchased |
$1,105,000 |
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Cost of goods available for sale |
$1,256,000 |
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Less: Inventory, December 31 |
$127,000 |
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Total Cost of Goods Sold |
$1,129,000 |
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Gross Margin |
$336,000 |
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Less: Operating Expenses |
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Salaries and Wages |
$140,000 |
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Office expenses |
$3,400 |
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Selling and Promotion |
$72,000 |
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Utilities and Fuel |
$44,600 |
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Rent |
$5,000 |
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Depreciation |
$20,000 |
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Total Operating Expenses |
$285,000 |
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Income before taxes |
51,000 |
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Less: Allowance for income taxes |
$8,700 |
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Net Income (to retained earnings) |
$42,300 |
