Income taxes payable 855 b determine nikes accounting

Income taxes payable 855
b) Determine Nike’s accounting equation by calculating the value of total assets, total liabilities,
and total stockholders’ equity. (hint: Assets = Liabilities + Stockholders’ Equity) . (4pts)
Total Assets = 14419
Total Liabilities = 4881
Total Stockholders’ Equity = 9538
Accounting equation Stated:
5146+2898+2403+2040+1932= 14,419
446+362+3000+218+855= 4,881
3443+6095= 9,538 4,881+9,538=14,419
Exercise 2 (10 PTS) : Income statement (single-step) preparation.
BUA 201_Spring 2016_Assignment #1 2

The following items were taken from Ricardo Inc.s’ 2014 income statement and balance sheet.
Cash $ 84,700 Inventory $ 64,618
Retained earnings (ending) 123,192 Accounts receivable 88,419
Cost of goods sold 483,854 Sales revenue 693,485
Salaries and wages expense 125,000 Income taxes payable 6,499
Prepaid insurance 7,818 Accounts payable 49,384
Service revenue 8,998 Interest expense 994
Instructions
a) After analyzing the data, prepare an income statement for the year ending December 31,
2014. Please, use the template provided below . (8 PTS)
b) Using the information from both the balance sheet and the income statement, determine the
figure for beginning retained earnings. Assume that dividend payments equal $5,000 for the
year 2014 . (2 PTS)
3