Prepare an income statement for 20XY. (Input all answers as positive values) For December 31, 20XX, the

Prepare an income statement for 20XY. (Input all answers as positive values)

 

Transcribed Image Text:

For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Balance Sheet Current Assets Liabilities Cash $18,300 Accounts payable Accounts receivable 15,500 Notes payable Inventory 30,800 Bonds payable $12,900 20,300 50,000 Prepaid expenses 20,900 Capital Assets Shareholders' Equity Plant and equipment (gross) $294,000 Common stock Less: Accumulated amortization 57,200 Retained earnings $75,000 164,100 Net plant and equipment 236,800 Total assets $322,300 Total liabilities and shareholders' equity $322,300 Sales for 20XY were $270,000, with cost of goods sold being 60 percent of sales. Amortization expense was 17 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 19 percent, while interest on the notes payable was 19 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $29,200, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 16 percent, and accounts payable increased by 31 percent. A new machine was purchased on December 31, 20XY, at a cost of $35,000. A cash dividend of $15,800 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $3,630 and bonds payable decreased by 10,330. The common stock account did not change. For December 31, 20XX, the balance sheet of the Gardner Corporation is as follows: Balance Sheet Current Assets Liabilities Cash $18,300 Accounts payable Accounts receivable 15,500 Notes payable Inventory 30,800 Bonds payable $12,900 20,300 50,000 Prepaid expenses 20,900 Capital Assets Shareholders' Equity Plant and equipment (gross) $294,000 Common stock Less: Accumulated amortization 57,200 Retained earnings $75,000 164,100 Net plant and equipment 236,800 Total assets $322,300 Total liabilities and shareholders' equity $322,300 Sales for 20XY were $270,000, with cost of goods sold being 60 percent of sales. Amortization expense was 17 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 19 percent, while interest on the notes payable was 19 percent. These are based on December 31, 20XX, balances. Selling and administrative expenses were $29,200, and the tax rate averaged 18 percent. During 20XY, the cash balance and prepaid expense balance were unchanged. Accounts receivable and inventory each increased by 16 percent, and accounts payable increased by 31 percent. A new machine was purchased on December 31, 20XY, at a cost of $35,000. A cash dividend of $15,800 was paid to common shareholders at the end of 20XY. Also, notes payable increased by $3,630 and bonds payable decreased by 10,330. The common stock account did not change.

Answer rating: 100% (QA)

Based on the information provided in the image we can prepare the following income statement for the ... View the full answer