I am not sure where to post this accounting or finance I am thinking now probably accounting after ready another enmail so sorry for the duplication
Income Statement
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Balance Sheet
December 31, 2006
Assets
Cash 70,000
A/R 150,000
Inventory 280,000
Total current assets$500,000
Plant and Equip $1,250,000
Less Accum. Deprec 250,00
Net plant and Equip $1,000,000
Total Assets $1,500,000
Liabilities
A/P $ 100,000
Notes Payable 120,000
Bonds Payable 300,000
Total Liabilities $520,000
Equity
Common Stock 300,000
Paid in Capital 200,000
Retained earnings 480,000
Total equity $980,000
Total liab and equity $1,500,000
Sales for 2006 were $2,000,000, with the cost of goods sold being 55% of sales. Depreciation expense was 10% of the gross plant and equipment at the beginning of the year. Interest expense was 9% on the notes payable and 11% on the bonds payable. Selling and administrative expenses were $200,000 and the firm's tax rate is 40%.
Prepare an income statement.
I get this far with an income statement but not I can not go any further. I think I must be missing some information of the balance sheet.
THIS IS WHAT I HAVE DONE SO FAR
EPICS CORPORATION
INCOME STATEMENT
DECEMBER 31, 2006
Sales $2,000,000
Cost of goods sold 1,100,000
Gross profits 900,000
Selling and administrative expense 200,000
Depreciation expense 125,000
Operating profit (EBIT) 575,000
Interest expense 43,800
Earnings before taxes 531,200
Taxes 212,480
Earnings after taxes (EAT) 318,720
Preferred stock dividends
Earnings available to common stockholders
Shares outstanding
Earnings per share
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