Henry Josstick has just started his first accounting course and has prepared the following balance sheet...
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Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. Payables Less accumulated depreciation Total current assets Long-tern debt Property, plant, and equipment Net fixed assets Total assets INCOME STATEMENT EBIT Debt due for repayment Cash Taxable income rederal plus other taxes Depreciation Net income BALANCE SHEET $ 49 Inventories 134 Receivables $ 420 590 Net sales Cost of goods sold Selling, general, and administrative expenses Total current liabilities Interest expense Total liabilities Shareholders equity Total liabilities and shareholders' equity $040 650 52 $ 39 29 $ 29 26 5.64 105 $ 39 146 Prepare the balance sheet and income statement by rearranging the above items. Note: Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values. Prepare an income statement Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. Payables Less accumulated depreciation Total current assets Long-tern debt Property, plant, and equipment Net fixed assets Total assets INCOME STATEMENT EBIT Debt due for repayment Cash Taxable income rederal plus other taxes Depreciation Net income BALANCE SHEET $ 49 Inventories 134 Receivables $ 420 590 Net sales Cost of goods sold Selling, general, and administrative expenses Total current liabilities Interest expense Total liabilities Shareholders equity Total liabilities and shareholders' equity $040 650 52 $ 39 29 $ 29 26 5.64 105 $ 39 146 Prepare the balance sheet and income statement by rearranging the above items. Note: Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values. Prepare an income statement
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Answer rating: 100% (QA)
The Income statement and balance sheet is rearranged and presented as below ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
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