Complete both the balance sheet and income statement exercises
Balance sheet
ASSETS
Cash $10,000
Accounts receivable 100,000
Inventory ?
Total current assets $220,000
Gross PP&E 500,000
Less accumulated depreciation ?
Net PP&E $375,000
Total Assets ?
LIABILITIES
Accounts payable $12,000
Notes payable 50,000
Total current liabilities ?
Long-term debt ?
Total Liabilities $190,000
EQUITY
Common stock ($1 par; 100,000 shares) ?
Paid-in capital ?
Retained earnings 150,000
Total stockholders’ equity ?
Total Liabilities and Equity ?
Income statement
Sales ?
COGS 575,000
Gross profit $1,600,000
G&A expense 200,000
Sales & Mkting expense ?
Depreciation 50,000
Operating income ?
Interest 100,000
Income before taxes ?
Income taxes (30%) ?
Net income $700,000
Steps:
1: Calculate Sales
- Calculate Income before taxes. Taxes are 30%, so you know the Net Income (Y) is a percent of "Income before taxes" (X)
- Calculate the Income taxes figure
- Calculate Operating Income
- Calculate Sales & Mkting Exp