(solution) Question: 3.2 (Preparing an income statement) Prepare an income

(solution) Question: 3.2 (Preparing an income statement) Prepare an income

Question:

3.2 (Preparing an income statement) Prepare an income statement and a common-sized income statement from the following information

Sale 525,000
Cost of Good sold 200,00
General and administrative expense  62,000
Depreciation expense  8,000
Interest expense  12,000
Income taxes  97,000

3.4 (Working with income statement and balance sheet) Prepare a balance sheet and a common-sized balance sheet from the following information? 

Cash  30,000
Account receivable  63,800
Account payable  52,500
Short-term not payable  11,000
Inventories 66,000
Gross fix assets  1,061,000
Accumulated depreciation   86,000
Long-term debt  210,000
Common stock  480,00
Other stock  25,000

Retaining earning? 

3.7 ( (Working with income statement and balance sheet) Prepare an income statement and balance sheet from the following scrambled list of items. What is the firm’s net working capital and debt ratio?

Sales

550,000

Accumulated depreciation

190,000

Cash

?

Cost of good sole

320,000

Account receivable

73,000

Depreciation expense

38,000

Account payable

65,000

Interest expense

26,000

Short-term note payable

29,000

Income statement

59,850

Inventories

47,000

Marketing, general expenses

45,000

Gross fixed assets

648,000

Long term debt

360,000

Common Stock

120,000

Other Stock

15,000

Retain Earning   262,900

3.9 (Working with statement of cash flow) Interpret the following information regarding Westlake Corporation cash flows.

Net income

$680

Depreciation expense

125

Profit before depreciation

805

Increase in account receivable

(200)

Increase in inventories

(240)

Increase in account payable

120

Increase in accrued expenses

81

Cash flow operation

$566

Investment activities

Change in fix assets

(1,064)

Financial activity

Increase in long term debt

$640

Common stock dividend

120

Total financing activities

$520

Change in cash

$22

Beginning cash

500

Ending cash

$522