During 2018, Brewster Company earned revenues of $146 million. Brewster incurred, during that same year, salary expense

Question:

During 2018, Brewster Company earned revenues of $146 million. Brewster incurred, during that same year, salary expense of $28 million, rent expense of $23 million, and utilities expense of $19 million. Brewster declared and paid dividends of $15 million during the year. At December 31, 2018, Brewster had cash of $175 million, accounts receivable of $85 million, property and equipment of $39 million, and other long-term assets of $25 million. At December 31, 2018, the company owed accounts payable of $56 million and had a long-term note payable of $33 million. Brewster began 2018 with a balance in retained earnings of $76 million. At December 31, 2018, Brewster had total stockholders’ equity of $235 million, which consisted of common stock and retained earnings. Brewster has a year-end of December 31. Prepare the following financial statements (with proper headings) for 2018:

1. Income statement,

2. Statement of retained earnings, and

3. Balance sheet.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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