The financial statements of Texans, Inc. for 20X1 follow: TEXANS, Inc. Balance Sheet December 31, 20X1 Cash
Question:
The financial statements of Texans, Inc. for 20X1 follow:
TEXANS, Inc. | ||
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Balance Sheet | ||
December 31, 20X1 | ||
Cash | $ 90 | |
Accounts receivable (net) | 225 | |
Other current assets | 45 | $360 |
Long-term assets | $750 | |
Less: Accumulated depreciation | 150 | 600 |
Total assets | $960 | |
Expenses payable | $180 | |
Mortgage payable | 360 | $540 |
Common stock | $200 | |
Retained earnings | 220 | 420 |
Total liabilities and equities | $960 |
TEXANS, Inc. | |
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Income Statement | |
For the Year Ending December 31, 20X1 | |
Revenues | $1,000 |
Expenses | 800 |
Net Income | $200 |
Other information:
a. Revenues for 20X2 are expected to increase by 20%.
b. Fixed expenses will remain constant at $200; the remaining expenses will continue to vary directly and proportionally with revenues.
c. Accounts receivable at December 31, 20X2 are expected to be 30% of 20X2 revenue.
d. HOSS plans a fixed (long-term) asset addition on January 1, 20X2 with a cost of $50. All fixed (long-term) assets have a useful life of 10 years, are depreciated on a straight-line basis and have no anticipated salvage value.
e. Expenses payable at December 31, 20X2 are expected to total 20% of total expenses.
f. The 20X2 payment on the principal (only) of the mortgage is $40.
g. HOSS plans to pay a dividend of $20 during 20X2.
h. The “other current assets” at December 31, 20X2 are expected to decrease by $15 to $30 at December 31, 20X2 because of the sale during 20X2 (at cost) of the "other current asset" held at December 31, 20X1.
i During 20X2, common stock was sold for $500.
Required:
Net income for 20X2 was _____
Total assets at December 31, 20X2 were _______
Total equities at December 31, 20X2 were _______
Total cash receipts from customers for 20x2 were _______
Total cash receipts from all sources for 20x2 were _______
Total cash payments for expenses during 20X2 were _______
Total cash payments for all purposes during 20X2 were ________
Assuming that the 20X2 payment of $40 on the mortgage included $30 of interest expense (that is $10 of principal and $30 of interest expense):
Total assets at December 31, 20X2 were _______
Total cash payments for all purposes during 20X2 were ________
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell