Question

Use the following information for Clarington INC. (assume the tax rate is 34%):

	2017		2018
Sales	$	11,573	$	12,936
Depreciation		1,661		1,736
Cost of goods sold		3,979		4,707
Other expenses		946		824
Interest		776		926
Cash		6,067		6,466
Accounts receivable		8,034		9,427
Short-term notes payable		1,171		1,147
Long-term debt		20,320		24,696
Net fixed assets		50,888		54,273
Accounts payable		4,384		4,644
Inventory		14,283		15,288
Dividends		1,411		1,618

Prepare a statement of financial position for this company for 2017 and 2018. (Be sure to list the accounts in order of their liquidity and liabilities in the order of their maturity. Omit $ sign in your response.)

CLARINGTON, INC. Statement of Financial Position as of Dec. 31
	2017		2018
Assets
(Click to select)   Accounts payable   Inventory   Notes payable   Cash   Accounts receivable	$		$
(Click to select)   Owner's equity   Accounts receivable   Accounts payable   Notes payable   Long-term debt
(Click to select)   Inventory   Accounts receivable   Net fixed assets   Accounts payable   Notes receivable
Current assets
(Click to select)   Accounts payable   Net fixed assets   Accounts receivable   Notes receivable   Long-term debt
Total assets	$		$
Liabilities
(Click to select)   Accounts payable   Net fixed aseets   Cost of goods sold   Long-term debt   Accounts receivable	$		$
(Click to select)   Accounts receivable   Notes receivable   Cash   Notes payable   Accounts payable
Current liabilities
(Click to select)   Cash   Cost of goods sold   Accounts receivable   Owner's equity   Long-term debt
(Click to select)   Cost of goods sold   Cash   Owner's equity   Accounts receivable   Notes receivable
Total liabilities & owner's equity	$		$

Prepare a statement of comprehensive income for this company for 2017 and 2018. (Round the final answers to 2 decimal places. Omit $ sign in your response.)

CLARINGTON, INC. Statement of Comprehensive Income
	2017		2018
Sales	$		$
COGS
Other expenses
Depreciation
EBIT	$		$
Interest
EBT
Taxes (34%)
Net income
Dividends	$		$
Additions to RE

Answer 1

Calculate the balance sheet and income statement as follows:

Formulas: