AFA 100 Lecture Notes - Lecture 10: Current Liability, Income Statement, Interest Expense
Get access
Related Documents
Related Questions
The balance sheet and the income statement for the year endedDecember 31, 2016 for Johnson Inc. follows. During 2016, cash of15,000 was paid for building and equipment, 10,000 was paid forretirement of notes payable, and $68,000.was paid for cashdividends. . During 2016, cash was received from issuance ofstock.
Balance Sheet As of December, 31. | ||
2016 | 2015 | |
Cash | $ 25,000 | $ 20,000 |
Accounts receivable, net | 60,000 | 70,000 |
Inventory | 80,000 | 100,000 |
Land | 50,000 | 50,000 |
Building and equipment | 130,000* | 115,000 |
Accumulated depreciation | (85,000) | (70,000) |
Total assets | $260,000 | $285,000 |
Accounts payable | $ 30,000 | $ 35,000 |
Income taxes payable | 4,000 | 3,000 |
Wages payable | 5,000 | 3,000 |
Current notes payable | 50,000** | 60,000 |
Common stock | 110,000*** | 100,000 |
Retained earnings | 61,000 | 84,000 |
Total liabilities and stockholders's equity | $260,000 | $285,000 |
Income Statement For the Year Ended December 31, 2016 | ||
Sales | $500,000 | |
Less expenses: | ||
Cost of goods sold | $330,000 | |
Selling and administrative expenses | 90,000 | |
(includes depreciation of $15,000) | ||
Interest expense | 5,000 | |
Total expenses | 425,000 | |
Income before taxes | $ 75,000 | |
Income tax expense | 30,000 | |
Net income | $ 45,000 |
(Required) Prepare the statement of cash flows for 2016. Presentcash flows from operations using the indirect approach..
Question 1
Prepare a horizontal analysis of the following comparativeincome statement for Westwind Corporation. Round percentage changesto the nearest one-tenth percent.
Westwind Corporation | ||
Comparative Income Statement | ||
For the Years Ended December 31, 2016 and 2015 | ||
2016 | 2015 | |
Total revenue | $1,400,000 | $1,250,000 |
Expenses: | ||
Cost of goods sold | 925,000 | $830,000 |
Operating expenses | 313,000 | 280,000 |
Interest expense | 14,000 | 12,000 |
Income tax expense | 48,300 | 38,000 |
Total expenses | $1,300,300 | $1,160,000 |
Net Income | $99,700 | $90,000 |