For December 31
For December 31
For December 31
Current Assets Liabilities Cash $ 20,000 Accounts payable $ 22,000 Accounts receivable
25,000 Notes payable 30,000Inventory 35,000 Bonds payable 60,000 Prepaid expenses
13,000 Fixed Assets Stock holdersâ Equity Gross plant and equipment $ 260,000Preferred
stock $ 30,000 Less: Accumulated depreciation 52,000Common stock 65,000 Paid in Capital
35,000 Net plant and equipment$ 208,000 Retained earnings 59,000 Total assets $ 301,000
Total liabilities and stock holdersâ equity $ 301,000 Sales for 20X2 were$270,000, and
the cost of goods sold was 60 percent of sales. Selling and administrative expense was
$27,000. Depreciation expense was 8 percent of plant and equipment (gross) at the beginning
of the year. Interest expense for the notes payable was10 percent, while the interest rate on
the bonds payable was 12percent. This interest expense is based on December 31,
$3,000 in preferred stock dividends were paid, and $5,400 in dividends were paid to common
During 20X2, the cash balance and prepaid expenses balances were unchanged.
Accounts receivable and inventory increased by 10 percent. A new machine was purchased
bonds payable decreased by $15,000, both at the end of the year. The preferred stock,
common stock, and capital paid in excess of par accounts did not change.
a. Prepare an income statement for 20X2. (Round EPS answer to 2decimal places.)
Sales 270,000
EBITDA 81,000
EBIT 60,200
EBT 50,000
b.
Baxter Company
Statement of Retained Earnings
For the year ended December 31, 20X2
c.
Baxter Company
Balance Sheet
December 31, 20X2
Liabilities and
Assets $ $ Stockholders' $ $
Equity
28,60
Cash 20,000 Accounts Payable
0
37,00
Accounts Receivable 27,500 Notes Payable
0
Total Current
Inventory 38,500 65,600
Liabilities
Stockholders’
Fixed Assets
Equity
305,00 30,00
Equipment, at Cost Preferred Stock
0 0
35,00
Paid-in Capital
0
90,60
Retained Earnings
0
Total
Stockholders' 220,600
Equity
Total Liabilities
$ $
Total Assets and Stockholders'
331,200 331,200
Equity