balance+sheet+%26+exhibit+1 - MAYNARD COMPANY BALANCE...

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MAYNARD COMPANY BALANCE SHEETS AS OF JUNE 1 AND JUNE 30 Assets Current Assets: As of June I As of June 30: Cash .......................................................................................................................................................................................... $ 34,983 $ 66,660 Accounts receivable ................................................................................................................................................................. 21,798 26,505 Note receivable ........................................................................................................................................................................ 11,700 0 Merchandise inventory ............................................................................................................................................................ 29,835 26,520 Supplies on hand ...................................................................................................................................................................... 5,559 6,630 Prepaid insurance ..................................................................................................................................................................... 3,150 2,826 Total current assets $107,025 $129,141 Noncurrent assets: Land .......................................................................................................................................................................................... 89,700 89,700 Building .................................................................................................................................................................................... 585,000 585,000 Less: Accumulated depreciation ........................................................................................................................................ (156,000 ) 429,000 ( 157,950 ) 427,050 Equipment ................................................................................................................................................................................ 13,260 36,660 Less: Accumulated depreciation ........................................................................................................................................ ( 5,304 ) 7,956 ( 5,928 ) 30,732 Other noncurrent assets ........................................................................................................................................................... 4,857 5,265 Total noncurrent assets ....................................................................................................................................................... 531,513 552,747 Total assets ....................................................................................................................................................... $638,538 $681,888 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable ..................................................................................................................................................................... $8,517 $ 21,315 Bank notes payable .................................................................................................................................................................. 8,385 29,250 Taxes payable .......................................................................................................................................................................... 5,700 7,224 Accrued wages payable ........................................................................................................................................................... 1,974 2,202 Total current liabilities ........................................................................................................................................................ $ 24,576 $ 59,991 Other noncurrent liabilities ...................................................................................................................................................... 2,451 2,451 Total liabilities .................................................................................................................................................................... 27,027 62,442 Shareholders’ Equity: Capital stock ............................................................................................................................................................................ 390,000 390,000 Retained earnings ..................................................................................................................................................................... 221,511 229,446 Total shareholder’s equity .................................................................................................................................................. 611,511 619,446 Total liabilities and shareholders’ equity ...................................................................................................................... $638,538 $681,888 Exhibit 1 Cash Receipts and Disbursements Month of June Cash Receipts Cash Sales $44420 Credit customers 21798 Diane Maynard 11700 Bank Loan 20865 Total Receipts 98783 Cash Disbursements Equipment purchased $23400 Other assets purchased 408
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Payments on accounts payable 8517 Cash purchase of merchandise 14715 Cash purchase of supplies 1671 Dividends 11700 Wages paid 5660 Utilities paid 900 Miscellaneous payments 135 Total disbursements 67106 Reconciliation: Cash balance, June 1 $34983 Receipts 98783 Subtotal 133766 Disbursements 67106 Cash balance, June 30 $66660 INCOME STATEMENT …. I just don’t know where should I get the other values or I have entered the correct values which are marked in red. I tried many times but I cannot come up with net income of 19635. Sales ($44,420 cash sales + $26,505 credit sales) .................................................................................................................................. $70,925 Less: Cost of sales * .......................................................................................................................................................................... Gross Margin ........................................................................................................................................................................................... Expenses Wages ................................................................................................................................................................................................ 5660 Utilities .............................................................................................................................................................................................. 900 Supplies ............................................................................................................................................................................................. 1671 Insurance) .......................................................................................................................................................................................... 2826 Depreciation) ..................................................................................................................................................................................... 5928 Miscellaneous .................................................................................................................................................................................... 135 Income before income tax ....................................................................................................................................................................... Income tax expense ........................................................................................................................................................................... 7224 Net Income ............................................................................................................................................................................................... 19,635 Less: Dividends ................................................................................................................................................................................. 11700 Increase in retained earnings ................................................................................................................................................................... 7935 *Cost of sales: Merchandise purchased for cash ....................................................................................................................................................... $14,715 Merchandise purchased on credit .....................................................................................................................................................
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