Question

From the information below prepare, in proper accounting form the, Income Statement, Balance Sheet, and Statement of Changes in Owners’ Equity, and Statement of Cash Flows for 2016 and 2017.

In your Income Statement Calculation, include Subtotals for EBITDA, EBIT, and EBT in addition to Net Income. You must submit your answers in either a MS Word or an MS Excel file.

TANDY COMPANY	Year Ending
	6/30/2017		6/30/2016		6/30/2015
Common Stock 100,000 shares outstanding	$460,000		$460,000		$460,000
Net Receivables	632,160		351,200		315,000
Cost of Goods Sold	5,528,000		2,864,000		2,706,000
Expenses	519,988		358,672		330,000
Interest Expense	136,012		43,828		42,500
Property Plant and Equipment	1,202,950		491,000		476,000
Less Accumulated Depreciation	263,160		146,200		127,300
Income Taxes (40%)	??		58,640		80,680
Cash And Cash Equivalents	7,282		57,600		37,500
Sales	6,034,000		3,432,000		3,300,000
Accounts Payable	524,160		145,600		166,000
Notes Payable	636,808		200,000		200,000
Accrued Liabilities	489,600		136,000		122,000
Depreciation Expense	116,960		18,900		19,800
Long Term Debt	723,432		323,432		323,432
Inventory	1,287,360		715,200		675,000
Dividends	11,000		22,000		22,000
Retained Earnings	32,592		203,768		104,748
Other Information
The firm had sufficient taxable income in 2016 and 2015 to obtain a full refund in 2017
Net Income for 2016	$87,960

TANDY COMPANY	Year Ending
	6/30/2017		6/30/2016		6/30/2015
Common Stock 100,000 shares outstanding	$460,000		$460,000		$460,000
Net Receivables	632,160		351,200		315,000
Cost of Goods Sold	5,528,000		2,864,000		2,706,000
Expenses	519,988		358,672		330,000
Interest Expense	136,012		43,828		42,500
Property Plant and Equipment	1,202,950		491,000		476,000
Less Accumulated Depreciation	263,160		146,200		127,300
Income Taxes (40%)	??		58,640		80,680
Cash And Cash Equivalents	7,282		57,600		37,500
Sales	6,034,000		3,432,000		3,300,000
Accounts Payable	524,160		145,600		166,000
Notes Payable	636,808		200,000		200,000
Accrued Liabilities	489,600		136,000		122,000
Depreciation Expense	116,960		18,900		19,800
Long Term Debt	723,432		323,432		323,432
Inventory	1,287,360		715,200		675,000
Dividends	11,000		22,000		22,000
Retained Earnings	32,592		203,768		104,748
Other Information
The firm had sufficient taxable income in 2016 and 2015 to obtain a full refund in 2017
Net Income for 2016	$87,960

Answer 1

income statement
particulars	2017		2016
revenue & gains
sales	6,034,000.00		3,432,000.00
total revenues & gains (A)		6,034,000.00		3,432,000.00
expenses & losses
cost of goods sold	5,528,000.00		2,864,000.00
expenses	519,988.00		358,672.00
interest expense	136,012.00		43,828.00
depreciation expense (B)	116,960.00		18,900.00
		6,300,960.00		3,285,400.00
net income / net loss (A) - (B)		(266,960.00)		146,600.00
earnings before tax (EBT)		(266,960.00)		146,600.00
add: interest	136,012.00		43,828.00
earnings before interest and tax (EBIT)		(130,948.00)		189,828.00
add:depreciation	116,960.00		18,900.00
earnings before interest depreciation & tax		(13,988.00)		208,728.00
balance sheet 2017 2016 equities and liabilities shareholders fund      460,000.00      460,000.00 retained earnings        32,592.00      203,768.00 long term debt      723,432.00      323,432.00 current liabilities accounts payable      524,160.00      145,600.00 notes payable      636,808.00      200,000.00 accrued liabilities      489,600.00      136,000.00 total liabilities 2,866,592.00 1,468,800.00 assets fixed assets property plant and equipment      939,790.00      344,800.00 current assets inventory 1,287,360.00      715,200.00 net recievables      632,160.00      351,200.00 cash and cash equivalents          7,282.00        57,600.00 total assets 2,866,592.00 1,468,800.00 * fixed assets are taken net of depreciation statement of changes of owners equity 2017 2016 opening capital balance ( as on 30.06.2016)      460,000.00      460,000.00 add :additional contributions nil nil less: drawings nil nil closing capital      460,000.00      460,000.00