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The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $120,000 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock. Accounts Amount Accounts Amount Accounts payable $2,000 Miscellaneous expense $460 Accounts receivable $10,340 Office expense $530 Cash $21,420 Supplies $1,670 Fees earned $75,790 Wages expense $29,070 Land $47,000 Dividends $16,570 Building $157,630 Required: Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement. Labels and Amount Descriptions Labels Expenses For the Year Ended March 31 March 31 Amount Descriptions Common stock Decrease in retained earnings Dividends Increase in retained earnings Net income for the year Net income Net loss for the year Net loss Retained earnings Retained earnings, April 1 Retained earnings, March 31 Total expenses Total assets Total liabilities and stockholders' equity Income Statement Prepare an income statement for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement. Thompson's Computer Services Income Statement
Akash M.
Presented here are the financial statements of Lily Company. LILY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,900 $19,700 Accounts receivable 32,300 19,500 Inventory 29,900 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (29,700) (23,000) Total $130,400 $114,200 Liabilities and Stockholders’ Equity Accounts payable $28,800 $ 16,700 Income taxes payable 7,000 8,300 Bonds payable 27,400 32,000 Common stock 18,100 14,100 Retained earnings 49,100 43,100 Total $130,400 $114,200 LILY COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241,300 Cost of goods sold 175,700 Gross profit 65,600 Selling expenses $18,600 Administrative expenses 6,200 24,800 Income from operations 40,800 Interest expense 2,400 Income before income taxes 38,400 Income tax expense 7,680 Net income $30,720 Additional data: 1. Depreciation expense was $15,500. 2. Dividends declared and paid were $24,720. 3. During the year, equipment was sold for $9,200 cash. This equipment originally cost $18,000 and had accumulated depreciation of $8,800 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. (a) Prepare a statement of cash flows for Lily Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Madhur L.
Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.) CABOT CORPORATION Income Statement For Year Ended December 31, 2015 Sales: $448,600 Cost of goods sold: $297,250 Gross profit: $151,350 Operating expenses: $98,600 Interest expense: $4,100 Income before taxes: $48,650 Income taxes: $19,598 Net income: $29,052 CABOT CORPORATION Balance Sheet December 31, 2015 Assets: Cash: $10,000 Short-term investments: $8,400 Accounts receivable, net: $29,200 Notes receivable (trade)*: $4,500 Merchandise inventory: $32,150 Prepaid expenses: $2,650 Plant assets, net: $153,300 Total assets: $240,200 Liabilities and Equity: Accounts payable: $17,500 Accrued wages payable: $3,200 Income taxes payable: $3,300 Long-term note payable, secured by mortgage on plant assets: $63,400 Common stock: $90,000 Retained earnings: $62,800 Total liabilities and equity: $240,200
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