Income Statements For the Years Ended December 31, 2020 and 2019 2020 2019 $ $ Operating revenues-
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Income Statements | ||
For the Years Ended December 31, 2020 and 2019 | ||
2020 | 2019 | |
$ | $ | |
Operating revenues- Note 1 | ? | 1,944,000 |
Less: Cost of goods sold | 968,000 | 960,000 |
Gross Profit | 1,124,800 | 984,000 |
Operating expenses | ||
Selling and administrative expenses | 368,000 | 400,000 |
Depreciation expense | ? | 80,000 |
Other expense | 160,000 | 128,000 |
Bad debt expense | 8,000 | 7,200 |
Rent expense | 160,000 | 160,000 |
Operating expenses | 776,000 | 775,200 |
Net income from operations | ? | 208,800 |
Inventory loss | (80,000) | - |
Interest expense | (71,472) | (70,784) |
Income before tax | 197,328 | 138,016 |
Income tax expense | (80,000) | (48,000) |
Net income | 117,328 | 90,016 |
Note 1: Operating revenue includes $84,600 gain on disposal of plant assets and other similar items. |
Balance Sheets | ||
December 31, 2020 and 2019 | ||
ASSETS | 2020 | 2019 |
$ | $ | |
Cash | 227,760 | 938,816 |
Accounts receivable | 720,000 | 560,000 |
Less: Allowance for bad debts | (9,600) | (8,800) |
Inventory | ? | 720,000 |
Total current assets | 1,818,160 | 2,210,016 |
Long term investment | 191,200 | 174,400 |
Property, plant, and equipment | ? | 800,000 |
Less: Accumulated depreciation | (304,000) | (320,000) |
Goodwill | 240,000 | - |
Total assets | 3,449,360 | 2,864,416 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Liabilities | ||
Accounts payable | 256,000 | 131,200 |
Accrued payables | 224,000 | 96,000 |
Unearned revenues | ? | 128,000 |
Total current liabilities | 480,000 | 355,200 |
Other long term liability - pension | 117,424 | 85,424 |
Bonds payable | 800,000 | 800,000 |
Less: Discount on bonds payable | (77,888) | (85,360) |
Deferred income tax | 50,480 | 51,136 |
Total Liabilities | 1,370,016 | 1,206,400 |
Shareholders' equity | ||
Preferred stock | 800,000 | 800,000 |
Common stock | 80,000 | 80,000 |
Additional paid-in capital | 960,000 | 880,000 |
Retained earnings | 527,344 | 506,016 |
Less: Treasury stock | (288,000) | (608,000) |
Total shareholders' equity | ? | 1,658,016 |
Total liabilities and shareholders' equity | 3,449,360 | 2,864,416 |
Prepare the income statement for the year 2020.
Prepare the balance sheet for the year 2020.
Prepare a cash flows statement for the operating activities for the year 2020.
Compute ratios that can be calculated from the data presented (2 years, trend, percentages etc.)
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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