cats3977
Sep 21, 2007, 10:06 PM
For December 31, 2003, the balance sheet of the Gardner Corporation is as follows: (listed below)
Sales for 2004 were $330,000 with cost of goods sold was 60 percent of sales. Selling and administrative expenses was $33,000. Depreciation expenses was 10 percent of plant and equipment (gross) at the beginning of the year. Interest expense for notes payable was 10 percent, while interest on bonds was 12 percent. These were based on December 31, 2003, balances. The tax rate averaged 20 percent.
$6,100 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding
During the year 2004, the cash balance and prepaid expenses balance were unchanged. Accounts receivable and inventory increased by 20 percent. A new machine was purchased on December 31, 2004, at a cost of $60,000.
Accounts payable increased by 30 percent. At year-end, December 31,204 notes payable increased b $10,000 and bonds payable decreased by $15,000. The common stock and paid in capital in excess of par accounts did not change.
A. prepare an income statement for 2004
B. prepare a statement of retained earnings for 2004
C. prepare a balance sheet as of December 31,2004
Income statement
Revenue 330,000
Cost of goods sold 198,000
Gross margin 132,000
SG & A 33,000
Depreciation 37,500
Interest 12,000
Total 82,500
EBT 49,500
Tax 9,900
Net 39,600
Dividends 6,100
Re 33,500
Balance Sheet
Assets
Current assets December 31,2003 December 31,2004
Cash 15,000
Accounts receivable 22,500
Inventory 37,500
Prepaid expenses 18,000
Total current assets 93,000
Fixed assets
Plant & equipment (gross) 375,000
Accumulated depreciation -75,000
Net plant & assets 300,000
Total assets 393,000
Liabilities and stockholders' equity
Current liabilities
Accounts payable 20,000
Notes payable 30,000
Total current liabilities 50,000
Bonds payable 75,000
Stockholders' equity
Common stock 112,500
Paid in capital 37,500
Retained earnings 118,000
Total Owners' equity 268,000
Total liabilities and stockholders' equity 393,000
I tried to fill in the blanks but i am not sure i am right. can someone please help .
Sales for 2004 were $330,000 with cost of goods sold was 60 percent of sales. Selling and administrative expenses was $33,000. Depreciation expenses was 10 percent of plant and equipment (gross) at the beginning of the year. Interest expense for notes payable was 10 percent, while interest on bonds was 12 percent. These were based on December 31, 2003, balances. The tax rate averaged 20 percent.
$6,100 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding
During the year 2004, the cash balance and prepaid expenses balance were unchanged. Accounts receivable and inventory increased by 20 percent. A new machine was purchased on December 31, 2004, at a cost of $60,000.
Accounts payable increased by 30 percent. At year-end, December 31,204 notes payable increased b $10,000 and bonds payable decreased by $15,000. The common stock and paid in capital in excess of par accounts did not change.
A. prepare an income statement for 2004
B. prepare a statement of retained earnings for 2004
C. prepare a balance sheet as of December 31,2004
Income statement
Revenue 330,000
Cost of goods sold 198,000
Gross margin 132,000
SG & A 33,000
Depreciation 37,500
Interest 12,000
Total 82,500
EBT 49,500
Tax 9,900
Net 39,600
Dividends 6,100
Re 33,500
Balance Sheet
Assets
Current assets December 31,2003 December 31,2004
Cash 15,000
Accounts receivable 22,500
Inventory 37,500
Prepaid expenses 18,000
Total current assets 93,000
Fixed assets
Plant & equipment (gross) 375,000
Accumulated depreciation -75,000
Net plant & assets 300,000
Total assets 393,000
Liabilities and stockholders' equity
Current liabilities
Accounts payable 20,000
Notes payable 30,000
Total current liabilities 50,000
Bonds payable 75,000
Stockholders' equity
Common stock 112,500
Paid in capital 37,500
Retained earnings 118,000
Total Owners' equity 268,000
Total liabilities and stockholders' equity 393,000
I tried to fill in the blanks but i am not sure i am right. can someone please help .