Hello,

This is my first time using this site but I am desperate. I am calculating some financial statements and want to make sure I have everything in the right place. I had to prepare a multi-step statement, retained earnings statement and a balance sheet. Did I do these right?:confused:

Below is the listing of items I prepared my statements from

Accounts payable 619.0
Accounts receivable, net 741.0
Accumulated other comprehensive income
(reduction of owners’ equity listed after treasury stock) (853.4)
Capital in excess of par value 49.9
Cash and cash equivalents 100.6
Cash dividends (412.6)
Common stock 103.8
Cost of goods sold 4569.0
Current maturities of long-term debt 776.4
Income taxes (expense) 423.4
Interest expense 391.2
Inventories 603.2
Long-term debt 4519.4
Net sales 8304.1
Notes payable (current liability) 420.9
Other assets (long-term assets) 5615.7
Other current assets 318.6
Other current liabilities 1198.6
Other income (expense), net 27.4
Other liabilities (long-term liabilities) 1789.9
Property, net 2840.2
Retained earnings, beginning of year 1564.7
Selling, general, and administrative expense 2227.0
Treasury stock at cost (reduction of owners’
equity listed after retained earnings) ( 278.2)

My statements start below:

Multi-step statement:
Sales Revenue 8,304
Cost of Goods Sold 4,569
Gross Margin 3,735
Operating expenses
Selling, general, and administrative expense
2,227
Total operating expenses 2,227
Income from operations 1,508

Other revenues and expenses
Other income (expense), net 27.4
Interest expense 391.2
Excess of other expenses over other revenue 419
Income before income taxes 1,090
Income tax expense 423.4
Net Income 666

Statement of Retained Earnings
Opening Balance 1564.7
Add: Net Income 666
Less: Dividends (412.6)
Closing Balance 1,818

Balance Sheet
Assets
Cash 100.6
Accounts Receivable 741.0
Less: Allowance
Notes Receivable (short term)
Interest Receivable(short term)
Inventory 603.2

Other current assets 318.6
Total Current Assets 1,763.4

Property, plant, and equipment
Property, net 2840.2
5615.7
Total property, plant, and equipment 8,456
Total Assets 10,219.3

Liabilities
Current liabilities:
Liabilties and Stockholders Equity
Current maturities of long-term debt 619.0
Salaries Payable 776.4
Note payable (current liability) 420.9
Other current liabilities 1198.6
Total Current Liabilities 3014.9
Long Term debt 4519.4
Other liabilities (long-term liabilities) 1789.9
Total Liabilities 9324.2

Stockholder's Equity

Contributed capital:
Common Stock 103.8
Capital in excess of par value 49.9
Retained Earnings 1,818
Treasury stock at cost (reduction of owners’ (278.2)
Accumulated other comprehensive income (853.4)
Total shareholder equity 840.3
Total liabilities and shareholders' equity 10,219

On your income statement, where did you get

Excess of other expenses over other revenue 419

Where did the 419 come from?

I am getting a Net Income of 720.9

Your Equity section on the B/S is wrong…but first thing is first, we need to address the Net Income number.

Hello,

This is my first time using this site but I am desperate. I am calculating some financial statements and want to make sure I have everything in the right place. I had to prepare a multi-step statement, retained earnings statement and a balance sheet. Did I do these right?:confused:

Below is the listing of items I prepared my statements from

Accounts payable 619.0
Accounts receivable, net 741.0
Accumulated other comprehensive income
(reduction of owners’ equity listed after treasury stock) (853.4)
Capital in excess of par value 49.9
Cash and cash equivalents 100.6
Cash dividends (412.6)
Common stock 103.8
Cost of goods sold 4569.0
Current maturities of long-term debt 776.4
Income taxes (expense) 423.4
Interest expense 391.2
Inventories 603.2
Long-term debt 4519.4
Net sales 8304.1
Notes payable (current liability) 420.9
Other assets (long-term assets) 5615.7
Other current assets 318.6
Other current liabilities 1198.6
Other income (expense), net 27.4
Other liabilities (long-term liabilities) 1789.9
Property, net 2840.2
Retained earnings, beginning of year 1564.7
Selling, general, and administrative expense 2227.0
Treasury stock at cost (reduction of owners’
equity listed after retained earnings) ( 278.2)

My statements start below:

Multi-step statement:
Sales Revenue 8,304
Cost of Goods Sold 4,569
Gross Margin 3,735
Operating expenses
Selling, general, and administrative expense
2,227
Total operating expenses 2,227
Income from operations 1,508

Other revenues and expenses
Other income (expense), net 27.4
Interest expense 391.2
Excess of other expenses over other revenue 419
Income before income taxes 1,090
Income tax expense 423.4
Net Income 666

Statement of Retained Earnings
Opening Balance 1564.7
Add: Net Income 666
Less: Dividends (412.6)
Closing Balance 1,818

Balance Sheet
Assets
Cash 100.6
Accounts Receivable 741.0
Less: Allowance
Notes Receivable (short term)
Interest Receivable(short term)
Inventory 603.2

Other current assets 318.6
Total Current Assets 1,763.4

Property, plant, and equipment
Property, net 2840.2
5615.7
Total property, plant, and equipment 8,456
Total Assets 10,219.3

Liabilities
Current liabilities:
Liabilties and Stockholders Equity
Current maturities of long-term debt 619.0
Salaries Payable 776.4
Note payable (current liability) 420.9
Other current liabilities 1198.6
Total Current Liabilities 3014.9
Long Term debt 4519.4
Other liabilities (long-term liabilities) 1789.9
Total Liabilities 9324.2

Stockholder's Equity

Contributed capital:
Common Stock 103.8
Capital in excess of par value 49.9
Retained Earnings 1,818
Treasury stock at cost (reduction of owners’ (278.2)
Accumulated other comprehensive income (853.4)
Total shareholder equity 840.3
Total liabilities and shareholders' equity 10,219
What did I do wrong on the Net income? I added these together:

Other income (expense), net 27.4
Interest expense 391.2
Excess of other expenses over other revenue Total is 418.6 rounding to 419

What am I missing?

Okay, I think I got it. I originally calculated to the $720 but lost faith in myself. I had a formula error on the equity B/S. How does this look?


What financial statement items would change as a result of net sales increasing to $10,304.1 million? Would I have to calculate percentage changes on everything to ascertain what changes? I imagine that inventory would have to change as well as other items. How am I doing so far?

Multi-step statement
Sales Revenue 8,304
Cost of Goods Sold 4,569
Operating expenses 2227.0
Selling, general, and administrative expense

Operating profit 1,508
Income from operations

Other revenues and expenses
Interest expense 391.2
Other income (expense), net 27.4
Excess of other expenses over other revenue 363.8
Income before income taxes 1,144
Income tax (expense), net 423.4
Net Income 720.9

Statement of Retained Earnings
Opening Balance 1564.7
Add: Net Income 721
Less: Dividends (412.6)
Closing Balance 1,873

Balance Sheet
Assets
Cash 100.6
Accounts Receivable 741.0
Less: Allowance
Notes Receivable (short term)
Interest Receivable(short term)
Inventory 603.2

Other current assets 318.6
Total Current Assets 1,763.4

Property, plant, and equipment
Property, net 2840.2
Other assets (long-term) 5615.7
Total property, plant, and equipment 8,456
Total Assets 10,219.3

Liabilities
Current liabilities:
Liabilties and Stockholders Equity
Current maturities of long-term debt 776.4
Accounts payable 619
Note payable (current liability) 420.9
Other current liabilities 1198.6
Total Current Liabilities 3014.9
Long Term debt 4519.4
Other liabilities (long-term liabilities) 1789.9
Total Liabilities 9324.2

Stockholder's Equity

Contributed capital:
Common Stock 103.8
Capital in excess of par value 49.9
Retained Earnings 1,873
Treasury stock at cost (reduction of owners' (278.2)
Accumulated other comprehensive income (853.4)
Total shareholder equity 895.1
Total liabilities and shareholders' equity 10,219

For the Net Income I get 720.9 and I see you are now getting that number as well.

Your I/S looks fine.

Your statement of R/E looks fine.

Your B/S looks fine.

Thank you so much for the help, I really appreciate it. I tend to lose confidence in myself and then go off course. Thank you again:)

You're welcome