The company expects this expansion will require an additional 1000000 of

The company expects this expansion will require an

This preview shows page 20 - 29 out of 38 pages.

The company expects this expansion will require an additional $1,000,000 of capital and generate an additi profit. The options are: 1) Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is curren 2) Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3) $500,000 each of preferred stock and bonds · On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It i extend the life of the machine by four years. No depreciation is necessary this year. · The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expen
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tone 1 or milestone 2 HOME
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hes should be used. analysis. vision process. wo storefront locations and months. tional $600,000 of after-tax ntly outstanding) is expected that the repair will patent took effect on 1/1/20XX nse
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Assets Liabilities and Owners' Equity Current Assets: Current Liabilities: Cash 1,488,999.34 Accounts Payable 1,555,212.85 Marketable Securities 5,500,000.00 Wages Payable 250,203.31 Accounts Receivable 7,092,495.88 Interest Payable 21,888.22 Baking Supplies 1,605,098.52 Current Portion of Bonds Payable 1,000,000.00 Merchandise Inventory 128,152.63 Income taxes currently payable 1,042,118.16 Prepaid Rent 71,877.07 Prepaid Insurance 207,834.14 Misc. Supplies 17,647.42 Total Current Assets 16,112,105.00 Total Current Liabilities 3,869,422.54 Long Term Liabilities: Long Term/Fixed Assets: Bonds Payable 10%, 20 year 4,000,000.00 Land 250,000.00 Building 1,250,000.00 Baking Equipment 2,254,140.00 Total Long Term Liabilities: 4,000,000.00 Accumulated Depreciation -328,282.00 Net Fixed assets 3,425,858.00 Total Liabilities: 7,869,422.54 Preferred Stock - (10,000 authorized, 500,000.00 5,000 issued, 10%, $100 par value) Common Stock - (2,000,000 shares 1,750,000.00 authorized, 1,750,000 issued, $1 par) Retained Earnings 9,418,540.46 Total Equity 11,668,540.46 Total Assets: 19,537,963.00 Total Liabilities & Equity 19,537,963.00
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Bakery Sales $ 33,881,157.15 Merchandise Sales 124,795.80 Total Revenues 34,005,952.95 Cost of Goods Sold - Baked 10,954,907.36 Cost of Goods Sold - Merchandise 88,994.79 Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.80 Operating Expenses: Rent Expense 1,576,731.95 Wages Expense 2,604,526.23 Misc. Supplies Expense 263,224.56 Repairs and Maintenance 47,353.05 Business License Expense 211,757.65 Misc. Expense 141,171.08 Depreciation Expense 634,520.00 Insurance Expense 112,937.69 Advertising Expense 160,413.49 Interest Expense 484,703.27 Telephone Expense 50,821.34 Total Operating Expenses: 6,288,160.31 Earnings before Income Tax 16,673,890.49 Income Taxes 4,168,472.62 Net Income 12,505,417.87
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Peyton Approved Statement of Retained Earnings For Year Ended 12/31/20XX Beginning Balance: $ 2,213,122.59 plus Net Income 12,505,417.87 less Dividends: Preferred 50,000.00 Common 5,250,000.00 Ending Balance $ 9,418,540.46 $ 9,418,540.46 HOME
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Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales 33,881,157.15 Merchandise Sales 124,795.80 Total Revenues 34,005,952.95 Cost of Goods Sold - Baked 10,954,907.36 Cost of Goods Sold - Merchandise 88,994.79 Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.80 Operating Expenses: Rent Expense 1,576,731.95 Wages Expense 2,604,526.23 Misc. Supplies Expense 263,224.56 Repairs and Maintenance 47,353.05 Business License Expense 211,757.65 Misc. Expense 141,171.08 Depreciation Expense 634,520.00 Insurance Expense 112,937.69 Advertising Expense 160,413.49 Interest Expense 484,703.27 Telephone Expense 50,821.34 Pension Expense - Retired Employees Health Ins. - Patent Amortization - Total Operating Expenses: 6,288,160.31 Operating Income 16,673,890.49 Income Taxes 4,168,847.62 Deferred tax Expense 52,325.25 Total Tax Expense 4,221,172.87
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Net Income 12,452,717.62 Unrealized Gain/(Loss) on Marketable Secur 265,000.00 Comprehensive Income 12,187,717.62
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