Use the below financial information to calculate the owners equity and to prepare a balance sheet with
Question:
Use the below financial information to calculate the owner’s equity and to prepare a balance sheet with a vertical analysis as of December 31, 2021, for Sienna’s Health and Fitness, LLC., owned by Sienna.
Current assets, $132,500;
property, plant, and equipment, $88,760;
investments and other assets, $32,400;
current liabilities, $51,150; and long-term liabilities, $87,490.
From the third-quarter 2021 information for Sienna’s Health and Fitness. Construct an income statement with vertical analysis:
gross sales, $224,400;
sales returns and allowances, $14,300;
beginning inventory, July 1, $165,000;
ending inventory, September 30, $143,320;
net purchases, $76,500;
total operating expenses, $68,600; and income tax, $8,790.
Sienna’s Health and Fitness
Income Statement
3RD QUARTER
REVENUE % of Revenue
Gross Sales $224,400
Fewer Sales, returns & allowances -$14,300
NET Sales $ 100%
COST OF GOODS SOLD % of COGS
Inventory July 1 $165,000
Net Purchases $76,500
Goods available for sale $241,500
Less: Inventory September 30 $143,320
Cost of Goods Sold $
GROSS MARGIN $111,920
Operating Expenses $68,600
INCOME BEFORE TAXES $
Income Taxes $8,790
NET INCOME $
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