Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of

Question:

Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items:

Depreciation expense...............$ 66,000

Cash .................... 225,000

Long-term debt .................. 334,000

Sales .................... 573,000

Accounts payable ............... 102,000

General and administrative expense ........ 79,000

Buildings and equipment ............ 895,000

Notes payable ................. 75,000

Accounts receivable .............. 167,500

Interest expense ................. 4,750

Accrued expenses ............... 7,900

Common stock ................ 289,000

Cost of goods sold ................ 297,000

Inventory ................... 99,300

Taxes .................... 50,500

Accumulated depreciation ............. 263,000

Taxes payable ................. 53,000

Retained earnings ................. 262,900

a. Prepare an income statement for the Warner Company.

b. Prepare a balance sheet for the Warner Company.

c. What can you say about the firm’s financial condition based on these financial statements?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...