The financial statements of Texans, Inc. for 20X1 follow:

TEXANS, Inc.
Balance Sheet
December 31, 20X1
Cash	$ 90
Accounts receivable (net)	225
Other current assets	45	$360
Long-term assets	$750
Less: Accumulated depreciation	150	600
Total assets		$960
Expenses payable	$180
Mortgage payable	360	$540
Common stock	$200
Retained earnings	220	420
Total liabilities and equities		$960

TEXANS, Inc.
Income Statement
For the Year Ending December 31, 20X1
Revenues	$1,000
Expenses	800
Net Income	$200

Other information:

a. Revenues for 20X2 are expected to increase by 20%.

b. Fixed expenses will remain constant at $200; the remaining expenses will continue to vary directly and proportionally with revenues.

c. Accounts receivable at December 31, 20X2 are expected to be 30% of 20X2 revenue.

d. HOSS plans a fixed (long-term) asset addition on January 1, 20X2 with a cost of $50. All fixed (long-term) assets have a useful life of 10 years, are depreciated on a straight-line basis and have no anticipated salvage value.

e. Expenses payable at December 31, 20X2 are expected to total 20% of total expenses.

f. The 20X2 payment on the principal (only) of the mortgage is $40.

g. HOSS plans to pay a dividend of $20 during 20X2.

h. The “other current assets” at December 31, 20X2 are expected to decrease by $15 to $30 at December 31, 20X2 because of the sale during 20X2 (at cost) of the "other current asset" held at December 31, 20X1.

i During 20X2, common stock was sold for $500.

Required:

Net income for 20X2 was _____
Total assets at December 31, 20X2 were _______
Total equities at December 31, 20X2 were _______
Total cash receipts from customers for 20x2 were _______
Total cash receipts from all sources for 20x2 were _______
Total cash payments for expenses during 20X2 were _______
Total cash payments for all purposes during 20X2 were ________

Assuming that the 20X2 payment of $40 on the mortgage included $30 of interest expense (that is $10 of principal and $30 of interest expense):

Total assets at December 31, 20X2 were _______

Total cash payments for all purposes during 20X2 were ________

Answer rating: 100% (QA)

SOLUTION a b 20X2 revenue to increase by 20 20X1 revenue 100000 20 Increase 20X2 revenue 120000 Fixe... View the full answer