Use the data from the following statements to answer the question. Partial Incom

Question

Use the data from the following statements to answer the question.

Partial Income Statement Year Ending 2011 Sales Revenue $350,000 COGS $140,000 Fixed Costs $ 43,000 SG&A Expenses $ 28,000 Depreciation $ 46,000 Partial Balance Sheet 12/31/2010 Assets: Liabilities: Cash $ 16,000 Notes Payable $ 14,000 Accounts Rec. $ 28,000 Accounts Payable $ 19,000 Inventories $ 48,000 Long-Term Debt $190,000 Fixed Assets $368,000 Owners’ Equity: Acc. Depreciation $142,000 Retained Earnings $ ??????? Intangible Assets $ 82,000 Common Stock $130,000 Partial Balance Sheet 12/31/2011 Assets: Liabilities: Cash $ 26,000 Notes Payable $ 12,000 Accounts Rec. $ 19,000 Accounts Payable $ 24,000 Inventories $ 53,000 Long-Term Debt $162,000 Fixed Assets $448,000 Owners’ Equity: Acc. Depreciation $ ??????? Retained Earnings $ ?????? Intangible Assets $ 82,000 Common Stock $180,000 a) Complete the partial income statement if the company paid interest expense of $18,000 for 2011 and had an overall tax rate of 40% for 2011. b) What are the net fixed assets for the years 2010 and 2011?

Explanation / Answer

Partial Income Statement For the Year 2011 Sales Revenue 350000 Less: COGS 140000 Contribution 210000 Less: Fixed Costs -43000 SG& A -28000 Depreciation -46000 Income before Interest & Taxes 93000 Less: Interest -18000 Income before Taxes 75000 Less: taxes @ 40% 30000 Net Income 45000 Net Fixed Assets Fixed Assets 368000 Less: Acc Dep -142000 Net Fixed Assets 226000

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