ch2_A1_A2sol

ch2_A1_A2sol - 53 CHAPTER 2: THE BASIC FINANCIAL STATEMENTS...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 53 CHAPTER 2: THE BASIC FINANCIAL STATEMENTS Solution A1. Using the data presented below for Purple Star Inc.: 2009 2008 Sales $5,500,000 $4,250,000 Cost of Goods 3,300,000 2,550,000 Depreciation 34,000 30,000 Selling and G&A Expenses 765,000 632,000 Fixed Expenses 100,000 100,000 Lease Expense 55,000 55,000 Interest Expense 130,000 110,000 Tax Rate 35.00% 30.00% Shares Outstanding 75,000 65,000 Cash 84,000 48,000 Marketable Securities 37,000 32,000 Accounts Receivable 370,000 347,000 Inventory 870,000 715,000 Prepaid Expenses 55,000 37,000 Plant & Equipment 5,170,000 4,910,000 Accumulated Depreciation 170,000 136,000 Long Term Investments 350,000 270,000 Accounts Payable 380,000 300,000 Notes Payable 44,000 25,000 Accrued Expenses 102,000 75,000 Other Current Liabilities 140,000 136,000 Long-term Debt 3,220,000 3,122,000 Common Stock 1,550,000 1,300,000 Additional Paid-in-Capital 572,000 542,000 Retained Earnings 758,000 723,000 a. Make the Purple Stars income statement and balance sheet using formulas wherever possible. a....
View Full Document

Page1 / 13

ch2_A1_A2sol - 53 CHAPTER 2: THE BASIC FINANCIAL STATEMENTS...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online