Friday 23 November 2012

Income Statement for the year ended 12/31/2011 Amount in Dollars Sales 2,000,000.00 Cost of Goods Sold 1,500,000.00 Gross Profit 500,000.00 Selling and Administrative Expenses 270,000.00 Depreciation Expense 50,000.00 Operating Profit (EBIT) 180,000.00 Interest Expense 20,000.00 Earnings Before Taxes 160,000.00 Taxes 49,500.00 Net Income 110,500.00 Notes: Dividends Paid to Preferred Stockholders 10,500.00 Cash Dividend to Common Stockholders 50,000.00 Comparative Balance Sheet for the Years 2009 and 2010 12/31/2009 12/31/2010 Assets Amount in Dollars Current Assets: Cash 30,000.00 40,000.00 Marketable Securities 10,000.00 10,000.00 Accounts Receivable 170,000.00 200,000.00 Inventory 160,000.00 180,000.00 Prepaid Expenses 30,000.00 20,000.00 400,000.00 450,000.00 Long Term Investments 20,000.00 50,000.00 Plant and Equipment 1,000,000.00 1,100,000.00 Less Accumulated Depreciation 550,000.00 600,000.00 Net Plant and Equipment 450,000.00 500,000.00 Total Assets 870,000.00 1,000,000.00 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable 45,000.00 80,000.00 Notes Payable 100,000.00 100,000.00 Accrued Expenses 35,000.00 30,000.00 180,000.00 210,000.00 Long Term Liabilities Bonds Payable, 2020 40,000.00 90,000.00 Total Liabilities 220,000.00 300,000.00 Stockholders' Equity Preferred Stock 50,000.00 50,000.00 Common Stock 100,000.00 100,000.00 Capital Paid in Excess of Par 250,000.00 250,000.00 Retained Earnings 250,000.00 300,000.00 Total Stockholders' Equity 650,000.00 700,000.00 Total Liabilities and Stockholders' Equity 870,000.00 1,000,000.00 . Cash flow under indirect method

Income Statement for the year ended 12/31/2011

 

 Amount in Dollars

Sales

               2,000,000.00

Cost of Goods Sold

               1,500,000.00

Gross Profit

                  500,000.00

Selling and Administrative Expenses

                  270,000.00

Depreciation Expense

                     50,000.00

Operating Profit (EBIT)

                  180,000.00

Interest Expense

                     20,000.00

Earnings Before Taxes

                  160,000.00

Taxes

                     49,500.00

Net Income

                  110,500.00

Notes:

 

Dividends Paid to Preferred Stockholders

                     10,500.00

Cash Dividend to Common Stockholders

                     50,000.00

 

Comparative Balance Sheet for the Years 2009 and 2010

 

12/31/2009

12/31/2010

Assets

 

Amount in Dollars

 

Current Assets:

 

 

 

Cash

         30,000.00

         40,000.00

Marketable Securities

         10,000.00

         10,000.00

Accounts Receivable

       170,000.00

       200,000.00

Inventory

       160,000.00

       180,000.00

Prepaid Expenses

         30,000.00

         20,000.00

 

       400,000.00

       450,000.00

Long Term Investments

         20,000.00

         50,000.00

Plant and Equipment

   1,000,000.00

   1,100,000.00

          Less Accumulated Depreciation

       550,000.00

       600,000.00

Net Plant and Equipment

 

       450,000.00

       500,000.00

Total Assets

       870,000.00

   1,000,000.00

Liabilities and Stockholders' Equity

 

 

 

Current Liabilities

 

 

 

 

Accounts Payable

         45,000.00

         80,000.00

Notes Payable

       100,000.00

       100,000.00

Accrued Expenses

         35,000.00

         30,000.00

 

       180,000.00

       210,000.00

Long Term Liabilities

 

 

 

Bonds Payable, 2020

         40,000.00

         90,000.00

 

 

 

Total Liabilities

       220,000.00

       300,000.00

Stockholders' Equity

 

 

 

Preferred Stock

         50,000.00

         50,000.00

Common Stock

       100,000.00

       100,000.00

Capital Paid in Excess of Par

       250,000.00

       250,000.00

Retained Earnings

       250,000.00

       300,000.00

Total Stockholders' Equity

       650,000.00

       700,000.00

Total Liabilities and Stockholders' Equity

       870,000.00

   1,000,000.00

 

. Cash flow under indirect method

 



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