How to create a projected income statement? ?? Page 3 Sales Cost of sales Gross income Operating
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Page 3 Sales Cost of sales Gross income Operating expenses: Exhibit 1 ELEGANCE JEWELLERS INC. STATEMENTS OF EARNINGS for years ending June 30 (000s) Selling and administrative Depreciation Total operating expenses Earnings from operations Unusual income (loss) Subtotal Less: interest expense Net earnings before tax Income taxes Net earnings after tax ¹ Dividends paid for 2011 were $35,000, and $50,000 for 2012. 2012 $ 1,982.8 945.6 $ 1,037.2 $ 714.2 53.7 767.9 S $ $ 269.3 (11.7) 257.6 152.1 $ 105.5 26.4 S 79.1 2011 $ 1,721.5 774.0 S 947.5 ⠀⠀ S $ S 584.1 44.6 628.7 318.8 (10.5) 308.3 34.8 273.5 68.4 205.1 9A84J002 Page 4 Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Loans to employees Investment in subsidiary Other investments Exhibit 2 ELEGANCE JEWELLERS INC. BALANCE SHEETS as at June 30 (000s) Fixed assets: Land Buildings Furniture and fixtures Fixed assets, cost Less: accumulated depreciation Total fixed assets (net) Total assets Liabilities Current liabilities: Working capital loan Accounts payable Income taxes payable Long-term debt due within one year Total current liabilities Common stock Retained earnings Bank loan (due December 31, 2013) Long-term notes payable Total liabilities Equity Total equity Total liabilities and equity ASSETS $ 1.3 43.2 1,155.4 6.0 $ 1,205.9 25.7 $ 686.2 17.8 S 25.5 441.1 108.5 575.1 221.0 354.1 $ $ 2.289.7 $ LIABILITIES AND EQUITY 2012 $ $ $ 10.4 223.7 2.5 236.6 418.4 902.8 $ 1,557.8 $ $ $ 2.289.7 110.0 621.9 731.9 $ 1.2 9.2 1,148.2 5.3 $ 1,163.9 $ 26.4 $ 25.5 374.0 61.9 461.4 167.3 294.1 $ $ 1.502.0 $ $ $ $ 2011 $ $ 17.6 133.0 379.8 123.7 9.9 646.4 - 152.8 799.2 110.0 592.8 702.8 $ S $ 1.502.0 9A84J002 Page 3 Sales Cost of sales Gross income Operating expenses: Exhibit 1 ELEGANCE JEWELLERS INC. STATEMENTS OF EARNINGS for years ending June 30 (000s) Selling and administrative Depreciation Total operating expenses Earnings from operations Unusual income (loss) Subtotal Less: interest expense Net earnings before tax Income taxes Net earnings after tax ¹ Dividends paid for 2011 were $35,000, and $50,000 for 2012. 2012 $ 1,982.8 945.6 $ 1,037.2 $ 714.2 53.7 767.9 S $ $ 269.3 (11.7) 257.6 152.1 $ 105.5 26.4 S 79.1 2011 $ 1,721.5 774.0 S 947.5 ⠀⠀ S $ S 584.1 44.6 628.7 318.8 (10.5) 308.3 34.8 273.5 68.4 205.1 9A84J002 Page 4 Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Loans to employees Investment in subsidiary Other investments Exhibit 2 ELEGANCE JEWELLERS INC. BALANCE SHEETS as at June 30 (000s) Fixed assets: Land Buildings Furniture and fixtures Fixed assets, cost Less: accumulated depreciation Total fixed assets (net) Total assets Liabilities Current liabilities: Working capital loan Accounts payable Income taxes payable Long-term debt due within one year Total current liabilities Common stock Retained earnings Bank loan (due December 31, 2013) Long-term notes payable Total liabilities Equity Total equity Total liabilities and equity ASSETS $ 1.3 43.2 1,155.4 6.0 $ 1,205.9 25.7 $ 686.2 17.8 S 25.5 441.1 108.5 575.1 221.0 354.1 $ $ 2.289.7 $ LIABILITIES AND EQUITY 2012 $ $ $ 10.4 223.7 2.5 236.6 418.4 902.8 $ 1,557.8 $ $ $ 2.289.7 110.0 621.9 731.9 $ 1.2 9.2 1,148.2 5.3 $ 1,163.9 $ 26.4 $ 25.5 374.0 61.9 461.4 167.3 294.1 $ $ 1.502.0 $ $ $ $ 2011 $ $ 17.6 133.0 379.8 123.7 9.9 646.4 - 152.8 799.2 110.0 592.8 702.8 $ S $ 1.502.0 9A84J002
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College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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