1
answer
0
watching
168
views

Use the information below for ABC Co. to answer thefollowing questions (#15 – 26).

BalanceSheet December31

2005 2004

Assets

Cash $ 20,000 $ 10,000

Accountsreceivable 160,000 110,000

Inventories 80,000 50,000

PrepaidRent 15,000 10,000

Investments 100,000 75,000

Plantassets 210,000 250,000

Accumulateddepreciation (65,000) (60,000)

Total $520,000 $445,000

Liabilities and Stockholders' Equity

Accountspayable $ 50,000 $ 40,000

Interestpayable 20,000 5,000

Income taxpayable 5,000 10,000

Notepayable 130,000 140,000

Commonstock 155,000 100,000

Retainedearnings 160,000 150,000

Total $520,000 $445,000

Income Statement

For the Year Ended December 31, 2005

Sales $800,000

Cost of goodssold 480,000

GrossProfit 320,000

Operating expenses (including DepreciationExpense) 120,000

Interestexpense 20,000

Income taxexpense 25,000

Total 165,000

Income before Gains andLosses 155,000

Gain on sale of plantassets 5,000

Netincome $ 160,000

Additional information:

Accounts payable pertain to the purchase of inventory.

Plant assets were sold for $40,000. The cost of the plant assetswas $40,000.

All dividends are cash.

For the year 2005:

Cash received/collected from customers is:

Purchases for the year is:

Cash paid to suppliers is:

Depreciation expense is:

For unlimited access to Homework Help, a Homework+ subscription is required.

Deanna Hettinger
Deanna HettingerLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in