Shown below is an adjusted trial balance for Sprouts Farmers Market, Inc. for the period ending December 31, 2013 (with the exception of Accumulated Deficit, which shows the balance at December 31, 2012):

Additional information:

? The note receivable is structured such that Sprouts will receive the balance in two equal annual equal installments with the first payment to be received on August 1, 2014 and the second installment on August 1, 2015.

? Management intends to hold onto the company?s investments until December 2015 at which point the investments will be sold.

? The company paid out $10,000 in dividends to its shareholders in 2013.

? Almost all of the loans from the banks are due in 3 years or more with the exception of a 90-day line of credit that has a balance of $5,167 on December 31, 2013.

? Prepaid advertising is for newspaper marketing services that will be provided over the first eight-months of 2014.

? The company had 97,000 common shares outstanding on January 1, 2013. It issued an additional 46,000 common shares on July 1, 2013.

? Sprouts has a 43.91% income tax rate

? Sprouts incurred aggregate losses since its inception, which resulted in an Accumulated Deficit at the end of 2012.

Prepare Balance Sheet and Income Statement.

Transcribed Image Text:

ACCOUNT COGS Loss on sale of equipment BALANCE $ 1,264,514 993 Accumulated Deficit (*) Accumulated Depreciation Inventory Interest income Property and equipment (gross) 393,200 Goodwill 408,078 Sales Revenue 1,794,823 Accounts Receivable (gross) Additional paid-in-capital Accumulated comprehensive income Interest Expense Loans from Bank (*) 20,351 94,034 98,382 562 9,015 435,480 other 2,000 35,488 584,802 ACCOUNT Investments (*) Note Receivable (*) Selling, general and administrative expenses Accounts Payable Prepaid Advertising (*) Intangible Assets (net) Common stock Amortization of trademarks Cash and cash equivalents Allowance for doubtful accounts Direct store expenses Accrued salaries BALANCE 9,521 45,156 93,495 82,721 6,535 196,772 126 4,937 67,211 600 368,323 48,958 ACCOUNT COGS Loss on sale of equipment BALANCE $ 1,264,514 993 Accumulated Deficit (*) Accumulated Depreciation Inventory Interest income Property and equipment (gross) 393,200 Goodwill 408,078 Sales Revenue 1,794,823 Accounts Receivable (gross) Additional paid-in-capital Accumulated comprehensive income Interest Expense Loans from Bank (*) 20,351 94,034 98,382 562 9,015 435,480 other 2,000 35,488 584,802 ACCOUNT Investments (*) Note Receivable (*) Selling, general and administrative expenses Accounts Payable Prepaid Advertising (*) Intangible Assets (net) Common stock Amortization of trademarks Cash and cash equivalents Allowance for doubtful accounts Direct store expenses Accrued salaries BALANCE 9,521 45,156 93,495 82,721 6,535 196,772 126 4,937 67,211 600 368,323 48,958

Answer rating: 100% (QA)

Sprouts Farmers Market Inc Income Statement For the Year Ended December 31 2013 Particulars Amount A... View the full answer