Hytek corp ended 2008 with cash of $50,000, accounts receivable of $100,000 and
ID: 2353326 • Letter: H
Question
Hytek corp ended 2008 with cash of $50,000, accounts receivable of $100,000 and inventory of $300,000. Property,plant, and equipment were valued at their original cost of $470,000, less accumulated depreciation of $170,000. Current liabililties other than income taxesowed[see details that follow] were $120,000, and long-term debt was $250,000. Stockholders' equity consisted of : $90,000 capital stock, investment and accumulated retained earnings, which had totaled $130,000 at the end of 2007. Net sales for 2008 $900,000. Expenses included $500,000 as cost of good sold, $50,000 as allowance for depreciation, $85,000 as selling expenses, and $65,000 as G&A expense. Interest income and expense were $5000 and $25,000, respectively, and income taxes for the year[unpaid at year's end] were $80,000. Dividends of $20,000 were paid. Prepare a balance sheet and an income statement reflecting these figures
Explanation / Answer
Current Assets Cash $ 50,000
Accounts Rec. 100,000
Inventory 300,000
Total Current Assets $450,000
Property, Plant & Equip. 470,000
Less Accum. Deprec. 170,000
Net PP&E Total Assets 300,000 $750,000
Current Liabilities Income Taxes Payable $ 80,000
Other Current Liab. 120,000*
Total Current Liab. $200,000
Long-Term Debt 250,000
Total Liabilities $450,000
Stockholders Equity Capital Stock $90,000
Retained Earnings 210,000 300,000
Total Liabilities and Equity $750,000 *
Includes $20,000 dividend declared but unpaid
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