Scenario: You have been hired as a manager for a family-owned agribusiness that specializes in producing...

  
 

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Scenario: You have been hired as a manager for a family-owned agribusiness that specializes in producing and selling organic fruits and vegetables, in addition to a pumpkin patch called Bernbeck Pumpkin Patch. The company has been in operation for the past three years and has experienced steady growth. The owner is interested in evaluating the company's financial performance to make informed decisions for future investments. Using the financial data provided below, prepare an income statement and balance sheet for the company for the year ending December 31, 2022. Leave any unused lines blank. Make sure your work is legible, or it will not be graded. Financial Data: • Accounts Payable = $25,000 • Accounts Receivable - $50,000 Accrued Expenses = $8,750 • Advances = $0 • • Bad Debt = $1,450 Cash/Checking = $75,000 Common Stock = $179,974 • Cost of goods sold for Pumpkin patch = $13,500 Cost of Organic Produce - $65,000 Decrease in Accounts payable - $5000 Decrease in accrued expenses = $5000 • Delivery/Freight expense = $24,300 • Depreciation on Equipment = $6000 • Depreciation on Processing/Shipping Facilities - $20,000 • • • • Discounts of $20,000 • Equipment - $60,000 Full-time salary expense = $120,000 Important notes: no Change in Common Stock • • Insurance expense = $13,200 Increase in Accounts receivable= $2500 • Interest Expense - $16,765 • Inventory - $75,000 Land=$350,000 • Miscellaneous expenses = $3,025 Mortgage=$185,000 • • No returns or allowances • Notes receivable = $0 • Office expenses - $740 • Organic fruits and vegetables sales - $457,000 • Other Assets-SO • Other Revenue - $5000 • Owner's Draw-$65,000 • Owner's Equity (Beginning of Year) - $503,918 • Part-time salary expense - $26,520 Processing/Shipping Facilities = $200,000 • • Promotion expense = $8,500 • Pumpkin patch sales = $63,000 • Utility expense = $16,300 • Retained Earnings = $385,276 • Taxes = $43,368 Balance Sheet for Bernbeck Pumpkin Patch for the year ended December 31, 2022 S S S Assets Current Assets Total Current Assets Fixed assets Total Fixed Assets Total Assets Liabilities Current Liabilities Total Current Liabilities Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Owner's Equity Owner-Invested Capital: Total Owner's Equity Total Liabilties and Owner's Equity Income Statement for Bernbeck Pumpkin Patch for the year ended December 31, 2022 Sales: Gross Sales Net Sales Cost of Goods Sold: Total Cost of Goods Sold Gross Profit (Margin) Operating Expenses: Total Operating Expenses Net Operating Income Net Income Before Taxes Net Income After Taxes Scenario: You have been hired as a manager for a family-owned agribusiness that specializes in producing and selling organic fruits and vegetables, in addition to a pumpkin patch called Bernbeck Pumpkin Patch. The company has been in operation for the past three years and has experienced steady growth. The owner is interested in evaluating the company's financial performance to make informed decisions for future investments. Using the financial data provided below, prepare an income statement and balance sheet for the company for the year ending December 31, 2022. Leave any unused lines blank. Make sure your work is legible, or it will not be graded. Financial Data: • Accounts Payable = $25,000 • Accounts Receivable - $50,000 Accrued Expenses = $8,750 • Advances = $0 • • Bad Debt = $1,450 Cash/Checking = $75,000 Common Stock = $179,974 • Cost of goods sold for Pumpkin patch = $13,500 Cost of Organic Produce - $65,000 Decrease in Accounts payable - $5000 Decrease in accrued expenses = $5000 • Delivery/Freight expense = $24,300 • Depreciation on Equipment = $6000 • Depreciation on Processing/Shipping Facilities - $20,000 • • • • Discounts of $20,000 • Equipment - $60,000 Full-time salary expense = $120,000 Important notes: no Change in Common Stock • • Insurance expense = $13,200 Increase in Accounts receivable= $2500 • Interest Expense - $16,765 • Inventory - $75,000 Land=$350,000 • Miscellaneous expenses = $3,025 Mortgage=$185,000 • • No returns or allowances • Notes receivable = $0 • Office expenses - $740 • Organic fruits and vegetables sales - $457,000 • Other Assets-SO • Other Revenue - $5000 • Owner's Draw-$65,000 • Owner's Equity (Beginning of Year) - $503,918 • Part-time salary expense - $26,520 Processing/Shipping Facilities = $200,000 • • Promotion expense = $8,500 • Pumpkin patch sales = $63,000 • Utility expense = $16,300 • Retained Earnings = $385,276 • Taxes = $43,368 Balance Sheet for Bernbeck Pumpkin Patch for the year ended December 31, 2022 S S S Assets Current Assets Total Current Assets Fixed assets Total Fixed Assets Total Assets Liabilities Current Liabilities Total Current Liabilities Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Owner's Equity Owner-Invested Capital: Total Owner's Equity Total Liabilties and Owner's Equity Income Statement for Bernbeck Pumpkin Patch for the year ended December 31, 2022 Sales: Gross Sales Net Sales Cost of Goods Sold: Total Cost of Goods Sold Gross Profit (Margin) Operating Expenses: Total Operating Expenses Net Operating Income Net Income Before Taxes Net Income After Taxes

Answer rating: 100% (QA)

SOLUTION Income Statement for the Year Ending December 31 2022 Sales revenue Organic fruits and vegetables sales 457000 Pumpkin patch sales 63 Other revenue 5000 Total sales revenue 462063 Cost of goo... View the full answer