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(Review of financial statements) Prepare a balance sheet and income statement fo

ID: 2647916 • Letter: #

Question

(Review of financial statements) Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items found below:

70 71

Depreciation expense

$ 66,000

Cash

225,000

Long-term debt

334,000

Sales

573,000

Accounts payable

102,000

General and administrative expense

79,000

Buildings and equipment

895,000

Notes payable

75,000

Accounts receivable

167,500

Interest expense

4,750

Accrued expenses

7,900

Common stock

289,000

Cost of goods sold

297,000

Inventory

99,300

Taxes

50,500

Accumulated depreciation

263,000

Taxes payable

53,000

Retained earnings

262,900

Top of Form

Page

a. Prepare an income statement for the Warner Company.

b. Prepare a balance sheet for the Warner Company.

c. What can you say about the firm

Depreciation expense

$ 66,000

Cash

225,000

Long-term debt

334,000

Sales

573,000

Accounts payable

102,000

General and administrative expense

79,000

Buildings and equipment

895,000

Notes payable

75,000

Accounts receivable

167,500

Interest expense

4,750

Accrued expenses

7,900

Common stock

289,000

Cost of goods sold

297,000

Inventory

99,300

Taxes

50,500

Accumulated depreciation

263,000

Taxes payable

53,000

Retained earnings

262,900

Explanation / Answer

a. Prepare an income statement for the Warner Company.

b. Prepare a balance sheet for the Warner Company.

c. What can you say about the firm

Warner Company Income statement Sales 573,000 Cost of goods sold 297,000 Gross Profit 276,000 General and administrative expense 79,000 Depreciation expense 66,000 Earning before interest & taxes 131,000 Interest expense 4,750 Earning before taxes 126,250 Taxes 50,500 Net Income 75,750