Incomplete financial statements for Baxter, Inc. follow.

____________________________________BAXTER, INC.

___________________________________Income Statement

_____________________________Year Ended November 30, 2015

Revenues..............................................................................$90,000

Operating expenses .........................................................................[1]

Profit before income tax..............................................................30,000

Income tax expense.....................................................................6,000

Profit......................................................................................$ [2]

Instructions
(a) Calculate the missing amounts for [1] to [13]. Note that you may not be able to solve each item in numerical order.
(b) Explain
(1) The sequence for preparing the financial statements, and
(2) The interrelationships between the income statement, statement of changes in equity, and statement of financial position.

Transcribed Image Text:

BAXTER, INC. Statement of Changes in Equity Year Ended November 30, 2015 Common Shaes Retained Earnings Total Equity Balance, December 1, 2014 Issued common shares Profit Dividends Balance, November 30, 201.5 0 12,000 0 0 10,000 (10,000) $12,000 4 7 BAXTER, INC. Statement of Financial Position November 30, 2015 Assets Liabilities and Shareholders' Equit Cash Accounts receivable Land Buildings Equipment Total assets $ 5,000 iabiities Accounts payable Bank loan payable Total liabilities $ [10] 50,000 84,000 10,000 60,000 25,000 Shareholders' equity Common shares 12 13 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $110,000