Question

Use the following information for Ingersoll, Inc., (assume the tax rate is 30 percent):

  

	2013			2014
Sales	$	12,073		$	13,236
Depreciation		1,671			1,746
Cost of goods sold		4,029			4,717
Other expenses		951			829
Interest		800			931
Cash		6,082			6,496
Accounts receivable		8,050			9,457
Long-term debt		20,350			24,661
Net fixed assets		50,910			54,303
Accounts payable		5,580			5,831
Inventory		14,300			15,298
Dividends		1,000			1,628

  

Prepare a balance sheet for this company for 2013 and 2014. (Do not round intermediate calculations. Be sure to list the accounts in order of their liquidity.)

  

INGERSOLL, INC. Balance Sheet as of Dec. 31
	2013		2014
Assets
(Click to select)  Notes payable  Cash  Inventory  Accounts receivable  Accounts payable	$		$
(Click to select)  Accounts payable  Notes payable  Accounts receivable  Long-term debt  Owners' equity
(Click to select)  Inventory  Net fixed assets  Accounts receivable  Accounts payable  Notes receivable
Current assets	$		$
(Click to select)  Long-term debt  Accounts payable  Notes receivable  Net fixed assets  Accounts receivable
Total assets	$		$
Liabilities
(Click to select)  Accounts receivable  Net fixed assets  Long-term debt  Accounts payable  Cost of goods sold	$		$
Current liabilities
(Click to select)  Owners' equity  Cost of goods sold  Long-term debt  Cash  Accounts receivable
(Click to select)  Cost of goods sold  Cash  Accounts receivable  Owners' equity  Notes receivable
Total liabilities & owners' equity	$		$

    

Prepare an income statement for this company for 2013 and 2014. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

INGERSOLL, INC. Income Statement
	2013		2014
Sales	$		$
COGS
Other expenses
Depreciation
EBIT	$		$
Interest
EBT
Taxes (30%)
Net income
Dividends	$		$
Additions to RE

Answer 1

Balance Sheet
Based on the above information provided for Ingersoll Inc., the balance sheet for the years 2013 and 2014 is as given below:

Balance Sheet as on Dec. 31	2013	2014
Assets
Cash	6,082.00	6,496.00
Accounts receivable	8,050.00	9,457.00
Inventory	14,300.00	15,298.00
Current Assets	28,432.00	31,251.00
Net fixed assets	50,910.00	54,303.00
Total Assets	79,342.00	85,554.00
Liabilities
Accounts payables	5,580.00	5,831.00
Current Liabilities	5,580.00	5,831.00
Long-term debt	20,350.00	24,661.00
Owners' equity	47,832.00	49,231.00
Total liabilities & owners' equity	79,342.00	85,554.00

The accounts are listed in the order of increasing liquidity.

Owners' equity, which has not been provided in the data, has been calculated as

Owners' equity = Total Assets - Accounts payables - Long-term debt

Income Statement
Income statement for years 2013 and 2014 based on the provided information is as below:

Income Statement	2013	2014
Sales	12,073.00	13,236.00
COGS	4,029.00	4,717.00
Other expernses	951.00	829.00
Depreciation	1,671.00	1,746.00
EBIT	5,422.00	5,944.00
Interest	800.00	931.00
EBT	4,622.00	5,013.00
Taxes (30%)	1,386.60	1,503.90
Net income	3,235.40	3,509.10
Dividends	1,000.00	1,628.00
Additions to RE	2,235.40	1,881.10