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In: Accounting

Complete the comparative income statement and balance sheet for Logic Company. (Input all answers as positive...

Complete the comparative income statement and balance sheet for Logic Company. (Input all answers as positive values except decrease answers which should be indicated by a minus sign. Round your "percent" answers to the nearest hundredth percent.)

LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2016 and 2017
INCREASE (DECREASE)
2017 2016 Amount Percent
Gross sales $ 19,200 $ 15,150 $
Sales returns and allowances 900 100
Net sales $ 18,300 $ 15,050 $
Cost of merchandise (goods) sold 11,950 8,950
Gross profit $ 6,350 $ 6,100 $
Operating expenses:
Depreciation $ 720 $ 610 $
Selling and administrative 2,350 2,100
Research 570 510
Miscellaneous 380 310
Total operating expenses $ 4,020 $ 3,530 $
Income before interest and taxes $ 2,330 $ 2,570 $
Interest expense 580 510
Income before taxes $ 1,750 $ 2,060 $
Provision for taxes 700 824
Net income $ 1,050 $ 1,236 $
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2016 and 2017
2017 2016
Amount Percent Amount Percent
Assets
Current assets:
Cash $ 12,100 $ 9,100
Accounts receivable 16,600 12,600
Merchandise inventory 8,600 14,100
Prepaid expenses 24,100 10,100
Total current assets $ 61,400 $ 45,900
Plant and equipment:
Building (net) $ 14,600 $ 11,100
Land 13,600 9,100
Total plant and equipment $ 28,200 $ 20,200
Total assets $ 89,600 $ 66,100
Liabilities
Current liabilities:
Accounts payable $ 13,100 $ 7,100
Salaries payable 7,100 5,100
Total current liabilities $ 20,200 $ 12,200
Long-term liabilities:
Mortgage note payable 22,100 20,600
Total liabilities $ 42,300 $ 32,800
Stockholders’ Equity
Common stock $ 21,100 $ 21,100
Retained earnings 26,200 12,200
Total stockholders’ equity $ 47,300 $ 33,300
Total liabilities and stockholders’ equity $ 89,600 $ 66,100

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Expert Solution

LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2016 and 2017
INCREASE (DECREASE)
2017 2016 Amount Percent
Gross sales $19,200.00 $15,150.00 $ 4,050.00 26.73%
Sales returns and allowances $     900.00 $     100.00 $     800.00 800.00%
Net sales $18,300.00 $15,050.00 $ 3,250.00 21.59%
Cost of merchandise (goods) sold $11,950.00 $ 8,950.00 $ 3,000.00 33.52%
Gross profit $ 6,350.00 $ 6,100.00 $     250.00 4.10%
Operating expenses:
Depreciation $     720.00 $     610.00 $     110.00 18.03%
Selling and administrative $ 2,350.00 $ 2,100.00 $     250.00 11.90%
Research $     570.00 $     510.00 $      60.00 11.76%
Miscellaneous $     380.00 $     310.00 $      70.00 22.58%
Total operating expenses $ 4,020.00 $ 3,530.00 $     490.00 13.88%
Income before interest and taxes $ 2,330.00 $ 2,570.00 $    (240.00) -9.34%
Interest expense $     580.00 $     510.00 $      70.00 13.73%
Income before taxes $ 1,750.00 $ 2,060.00 $    (310.00) -15.05%
Provision for taxes $     700.00 $     824.00 $    (124.00) -15.05%
Net income $ 1,050.00 $ 1,236.00 $    (186.00) -15.05%
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2016 and 2017
2017 2016
Amount Percent Amount Percent
Assets
Current assets:
Cash $12,100.00 13.50% $ 9,100.00 13.77%
Accounts receivable $16,600.00 18.53% $12,600.00 19.06%
Merchandise inventory $ 8,600.00 9.60% $14,100.00 21.33%
Prepaid expenses $24,100.00 26.90% $10,100.00 15.28%
Total current assets $61,400.00 68.53% $45,900.00 69.44%
Plant and equipment:
Building (net) $14,600.00 16.29% $11,100.00 16.79%
Land $13,600.00 15.18% $ 9,100.00 13.77%
Total plant and equipment $28,200.00 31.47% $20,200.00 30.56%
Total assets $89,600.00 100.00% $66,100.00 100.00%
Liabilities
Current liabilities:
Accounts payable $13,100.00 14.62% $ 7,100.00 10.74%
Salaries payable $ 7,100.00 7.92% $ 5,100.00 7.72%
Total current liabilities $20,200.00 22.54% $12,200.00 18.46%
Long-term liabilities:
Mortgage note payable $22,100.00 24.67% $20,600.00 31.16%
Total liabilities $42,300.00 47.21% $32,800.00 49.62%
Stockholders’ Equity
Common stock $21,100.00 23.55% $21,100.00 31.92%
Retained earnings $26,200.00 29.24% $12,200.00 18.46%
Total stockholders’ equity $47,300.00 52.79% $33,300.00 50.38%
Total liabilities and stockholders’ equity $89,600.00 100.00% $66,100.00 100.00%

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