The comparative statements of Pronghorn Interiors Ltd. are presented as follows: PRONGHORN INTERIORS LTD. Income Statement For
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The comparative statements of Pronghorn Interiors Ltd. are presented as follows:
PRONGHORN INTERIORS LTD. Income Statement For the Year Ended December 31 | ||||
2021 | 2020 | |||
Net sales | $2,031,750 | $1,809,500 | ||
Cost of goods sold | 1,153,000 | 1,008,500 | ||
Gross profit | 878,750 | 801,000 | ||
Selling and administrative expenses | 502,000 | 488,000 | ||
Income from operations | 376,750 | 313,000 | ||
Other expenses and losses | ||||
Interest expense | 13,000 | 16,000 | ||
Income before income taxes | 363,750 | 297,000 | ||
Income tax expense | 105,275 | 76,000 | ||
Profit | $258,475 | $221,000 |
PRONGHORN INTERIORS LTD. Balance Sheet December 31 | ||||||
Assets | 2021 | 2020 | 2019 | |||
Current assets | ||||||
Cash | $80,000 | $129,100 | $112,600 | |||
Accounts receivable | 185,600 | 109,000 | 101,800 | |||
Inventory | 215,800 | 124,000 | 114,500 | |||
Total current assets | 481,400 | 362,100 | 328,900 | |||
Property, plant, and equipment (net) | 647,700 | 600,300 | 512,300 | |||
Total assets | $1,129,100 | $962,400 | $841,200 | |||
Liabilities and Shareholders’ Equity | ||||||
Current liabilities | ||||||
Accounts payable | $285,175 | $156,000 | $138,400 | |||
Income taxes payable | 43,000 | 43,000 | 41,500 | |||
Total current liabilities | 328,175 | 199,000 | 179,900 | |||
Bonds payable | 190,000 | 195,000 | 200,000 | |||
Total liabilities | 518,175 | 394,000 | 379,900 | |||
Shareholders’ equity | ||||||
Common shares | 280,000 | 280,000 | 300,000 | |||
Retained earnings | 330,925 | 288,400 | 161,300 | |||
Total shareholders’ equity | 610,925 | 568,400 | 461,300 | |||
Total liabilities and shareholders’ equity | $1,129,100 | $962,400 | $841,200 |
Additional information:
1. | All sales were on account. | |
2. | Weighted-average common shares in 2021 were 56,000 and in 2020 were 58,000. |
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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