Assume that you are the president of Highlight Construction Company. At the end of the first...

 

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Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) $ 24,900 11,800 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 72,000 42,000 Accounts payable owed to suppliers 47,940 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 3,000 133,000 Expenses, including the sost of the merchandise sold (excluding income taxes) Income tax expense at 30 x pretax income; all paid during the current year 87,200 Common stock (December 31) Dividends declared and paid during the current_year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 79,200 11,500 Required: 1. Prepare a summarized income statement for the year. HIGHLIGHT CONSTRUCTION COMPANY Equipment Accounts payable Pretax income Salary payable Total expenses Net income Income Statement $ 42,000 47,940 87,200 3,000 Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) $ 24,900 11,800 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 72,000 42,000 Accounts payable owed to suppliers 47,940 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 3,000 133,000 Expenses, including the sost of the merchandise sold (excluding income taxes) Income tax expense at 30 x pretax income; all paid during the current year 87,200 Common stock (December 31) Dividends declared and paid during the current_year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 79,200 11,500 Required: 1. Prepare a summarized income statement for the year. HIGHLIGHT CONSTRUCTION COMPANY Equipment Accounts payable Pretax income Salary payable Total expenses Net income Income Statement $ 42,000 47,940 87,200 3,000