BS_IS_Example - $ 1,000.00 Long Term Debt $ 500.00...

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Finance 254 Income Statement and Balance Sheet Example UberComputer.com is in the business of selling computers. Given below is the balance sheet for UberComputer.com as of 12/31/2001. Following the balance sheet are some changes to the balance sheet accounts and income statement items that occurred for the company in 2002. Using the balance sheet below and the items for 2002, construct an income statement for 2002 and a balance sheet as of 12/31/2002. First assume they pay no dividend and then that they set the payout ratio at 0.5. Balance Sheet for UberComputer.Com as of December 31, 2001 Assets Liabilities Cash $ 500.00 Accounts Payable $ 125.00 Accounts Receivable $ 175.00 Short Term Debt $ 100.00 Inventory $ 325.00 Total Short Term Liabilities $ 225.00 Total Current Assets
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Unformatted text preview: $ 1,000.00 Long Term Debt $ 500.00 Property, Plant, and Equipment $ 300.00 Less Accumulated Depreciation $ (100.00) Total Liabilities $ 725.00 Total Fixed Assets $ 200.00 Equity Total Assets $ 1,200.00 Common Stock $ 100.00 Retained Earnings $ 375.00 Total Equity $ 475.00 Total L + E $ 1,200.00 Change in Cash Balance $ (100) Change in A/R $ 140 Change in Inventory $ - Purchased Equipment $ 75 Depreciation Expense $ 25 Change in A/P $ (50) Sale of Common Stock $ 20 Retention Rate 100% Sales Revenue $ 1,200 Cost of Goods Sold $ 800 Selling Expenses $ 100 General Overhead Exp. $ 50 Interest Rate on LTD 10% Tax Rate 40% Assume the firm rolls over the short term debt Long Term Debt is Due 2020 2003 Brian J. Henderson & Joseph M. Marks...
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