Nelson Co. Income Statement For the years ending 12/31/13 12/31/14 Sales $8,500,
ID: 2426087 • Letter: N
Question
Nelson Co.
Income Statement
For the years ending
12/31/13
12/31/14
Sales
$8,500,000
$9,150,000
Cost of goods sold
4,500,000
5,350,000
Gross profit
Selling Expense
1,600,000
1,900,000
Administrative expense
1,300,000
1,400,000
Income from operations
Other Income
40,000
150,000
Interest expense
50,000
30,000
Income before taxes
Income taxes 25%
Net Income
Nelson Co.
Retained Earnings Statement
For the years ending
12/31/13
12/31/14
Retained Earnings – Beg. Balance
$3,758,000
Net income
Preferred dividends
Common dividends
50,000
50,000
Retained Earnings- Ending Balance
Nelson Co.
Balance Sheet
As of
12/31/13
12/31/14
Assets
Current Assets:
Cash
300,000
250,000
Short term investments
910,000
800,000
Account receivable
540,000
410,000
Inventory
990,000
950,000
Prepaid expenses
250,000
210,000
Total current assets
Long term investments
1,800,000
1,900,000
Land Buildings Equipment
3,240,000
3,466,000
Total Assets
Liabilities
Current Liabilities:
979,000
780,000
Long term Liabilities:
Mortgage Payable 8% due 2025
200,000
90,000
Bonds payable $5
1,400,000
1,300,000
Total Liabilities
Shareholders’ Equity
Preferred stock $10 par 10%
500,000
500,000
Common Stock, $5 par
400,000
400,000
Retained Earning
Total shareholders’ equity
Total Liabilities & shareholders’ equity
Fill in the blanks on the financial statements.
12/31/13
12/31/14
Sales
$8,500,000
$9,150,000
Cost of goods sold
4,500,000
5,350,000
Gross profit
Selling Expense
1,600,000
1,900,000
Administrative expense
1,300,000
1,400,000
Income from operations
Other Income
40,000
150,000
Interest expense
50,000
30,000
Income before taxes
Income taxes 25%
Net Income
Explanation / Answer
1
Earning statement
Balance sheet
12/3/13 12/31/14 Sales 8,500,000 9,150,000 COGS 4,500,000 5,350,000 Gross profit 4,000,000 3,800,000 Selling expense 1,600,000 1,900,000 Administrative expense 1,300,000 1,400,000 income from operations 1,100,000 500,000 other inocme 40,000 150,000 interest expense 50,000 30,000 inomce before taxes 1,090,000 620,000 income taxes @25% 272,500 155,000 Net income 817,500 465,000Related Questions
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