Question
In: Finance
Provided below is the incomplete income statement (for 2020) and balance sheet (Dec 31 2019 and...
Provided below is the incomplete income statement (for 2020) and balance sheet (Dec 31 2019 and Dec 31 2020) for SCOTTY Inc. SCOTTY Inc. Income Statement For the year ended Dec. 21, 2020 Net sales $8,953 Cost of goods sold $5,865 Depreciation $? EBIT $? Interest paid $675 Earnings before taxes $? Taxes $400 Net income $705 Dividends paid $? Addition to retained earnings $450 SCOTTY Inc. Balance Sheet as at December 31, 2019 and 2020 2019 2020 2019 2020 Cash $725 $1,135 Accounts payable $859 $1,031 Accounts rec. $2,330 $? Notes payable $? $4,020 Inventory $3,240 $5,202 Current liabilities $? $? Current assets $? $? Long-term debt $9,250 $9,750 Net fixed assets $? $9,211 Common stock $250 $? Retained earnings $? $2,797 Total assets $16,083 $17,848 Total liabilities & equity $? $? a) Fill in the missing values for entries in the income statement and balance sheet in the table provided below. MISSING ENTERIES VALUES Depreciation EBIT Earnings before taxes Dividends paid Current assets (2019) Net fixed assets (2019) Notes payable (2019) Current Liabilities (2019) Retained earnings (2019) Total liabilities & equity (2019) Accounts receivables (2020) Current assets (2020) Current Liabilities (2020) Common stock (2020) Total liabilities & equity (2020) b) What is the company’s net working capital at the end of 2019 and at the end of 2020?
Solutions
Expert Solution
| INCOME STATEMENT | ||||||
| A | Net sales | $8,953 | ||||
| B | Cost of goods sold | $5,865 | ||||
| C=A-B | Gross Profit | $3,088 | ||||
| X=C-Y | Depreciation | $1,308 | ||||
| Y=D+Z | EBIT | $1,780 | ||||
| D | Interest paid | $675 | ||||
| Z=E+F | Earnings before taxes | $1,105 | ||||
| E | Taxes | $400 | ||||
| F | Net income | $705 | ||||
| W=F-G | Dividend paid | $255 | ||||
| G | Addition to retained Earnings | $450 | ||||
| Retained Earnings in 2019=2797-450= | $2,347 | |||||
| BALANCE SHEET | ||||||
| 2019 | 2020 | |||||
| a | Cash | $725 | $1,135 | |||
| b | Accounts receivable | $2,330 | $2,300 | |||
| c | Inventory | $3,240 | $5,202 | |||
| d=a+b+c | Current Assets | $6,295 | $8,637 | |||
| e | Net fixed assets | $9,788 | $9,211 | |||
| f=d+e | Total assets | $16,083 | $17,848 | |||
| g | Accounts payable | $859 | $1,031 | |||
| h | Notes payable | $3,377 | $4,020 | |||
| i=g+h | Current Liabilites | $4,236 | $5,051 | |||
| j | Long-term debt | $9,250 | $9,750 | |||
| k | Common stock | $250 | $250 | |||
| l | Retained earnings | $2,347 | $2,797 | |||
| m=f=i+j+k+l | Total liabilities & equity | $16,083 | $17,848 | |||
| X=d-i | Net Working Capital=Current Assets-Current Liabilities | $2,059 | $3,586 | |||
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19,100
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(2,000
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Prepaid expenses
4,200
2,500
Inventory
81,300
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Land
49,600
49,600
Buildings
126,200
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(30,200
)
(23,300
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Equipment
53,000
45,800
Accumulated depreciation—equipment
(19,100
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(15,600
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Delivery equipment
39,200
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Short-term investments
24,900
19,100
Accounts receivable
42,500
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Allowance for doubtful accounts
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(2,100
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Prepaid expenses
4,300
2,500
Inventory
81,800
65,500
Land
50,400
50,400
Buildings
124,200
73,600
Accumulated depreciation—buildings
(29,900
)
(22,900
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Equipment
52,700
45,700
Accumulated depreciation—equipment
(18,900
)
(15,600
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Delivery equipment
38,600
38,600
Accumulated depreciation—delivery equipment
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(20,700
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Patents
15,000
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$378,600
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Dec. 31, 2020
Dec. 31, 2019
Cash
$16,400
$21,100
Short-term investments
25,200
19,100
Accounts receivable
43,400
45,100
Allowance for doubtful accounts
(1,900
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(2,000
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Prepaid expenses
4,300
2,400
Inventory
82,200
65,200
Land
50,100
50,100
Buildings
125,100
73,600
Accumulated depreciation—buildings
(29,700
)
(23,000
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Equipment
52,600
45,900
Accumulated depreciation—equipment
(19,100
)
(15,300
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Delivery equipment
39,400
39,400
Accumulated depreciation—delivery equipment
(22,200
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(20,700
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Patents
14,900
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$380,700
$300,900
Accounts payable...
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statement for 2020 are provided below for Dandelion’s
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Assets
2020
2019
Cash
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Account Receivable
550
1,200
Inventory
1,800
1,300
Investment – Trading Securities
970
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Fair Value Adjustment
70
0
Property Plant & Equipment
12,000
10,800
Accumulated Depreciation – PPE
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Assets
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$200
$550
Accrued Wages
800
220
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Additional information:
1.
The accounts receivable
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2.
All sales are on
account.
3.
The profit margin for 2017 is
14.5%.
4.
Return on assets is 22% for
2017.
5.
The current ratio on December
31, 2017, is 3.0.
6.
The inventory turnover for
2017 is 4.8 times.
Compute the missing information given the ratios above.
DEINES CORPORATION
Income...
Balance Sheet at Dec 31, 2019 &nbs
Balance Sheet at Dec 31,
2019
Assets
2019
2018
Cash
$12,000
$33,750
Accounts Receivables
65,250
58,500
Inventories
30,000
24,000
Long term investments (FV-NI)
23,250
40,500
Equipment
30,000
18,750
Accumulated Depreciation- equipment
(5,625)
(2,250)
Building
67,500
56,250
Accumulated Depreciation- building
(13,500)
(9,000)
Land
32,500
32,500
Total Assets
$241,375
$253,000
Liabilities & Shareholder’s Equities
Accounts Payable
30,000
24,750
Accrued Payables
2,375
1,125
Income tax payable
1,000
1,500
Long term note payable
26,000
31,000
Common Shares, issued & outstanding
150,000
150,000
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Fuller Corp. Balance Sheet at Dec 31, 2019 &nb
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Balance Sheet at Dec 31,
2019
AAssets
2019
2018
CCash
$12,000
$33,750
AAccounts Receivables
65,250
58,500
IIInventories
30,000
24,000
LLong term investments (FV-NI)
23,250
40,500
EEquipment
30,000
18,750
AAccumulated Depreciation- equipment
(5,625)
(2,250)
BBuilding
67,500
56,250
AAccumulated Depreciation- building
(13,500)
(9,000)
LLand
32,500
32,500
TTotal Assets
$241,375
$253,000
LLiabilities & Shareholder’s Equities
AAccounts Payable
30,000
24,750
AAccrued Payables
2,375
1,125
IIIncome tax payable
1,000
1,500
LLong term note payable
26,000
31,000
CCommon Shares, issued & outstanding
150,000
150,000...
SportsNet Corporation’s recent comparative balance sheet and income statement follow: Balance Sheets, December 31 2019 2020...
SportsNet Corporation’s recent comparative balance sheet
and income statement follow:
Balance Sheets, December 31
2019
2020
Assets
Cash
$ 51,200
$102,400
Accounts receivable
179,200
166,400
Allowance for doubtful accounts
(19,200)
(16,000)
Other receivables (nontrade)
9,600
6,400
Inventory
96,000
102,400
Equipment
256,000
246,400
Accumulated depreciation
(19,200)
(16,000)
Intangibles, net
176,000
169,600
Total assets
$729,600
$761,600
Liabilities and Stockholders' Equity
Accounts payable
$160,000
$192,000
Income taxes payable
224,000
160,000
Interest payable
6,400
3,200
Bonds payable
102,400
—
Discount on bonds payable
(6,400)...
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Additional
information:
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