Question

Use the following information for Ingersoll, Inc. Assume the tax rate is 24 percent.

  

	2018			2019
Sales	$	21,573		$	18,936
Depreciation		1,861			1,936
Cost of goods sold		4,979			4,907
Other expenses		1,046			924
Interest		895			1,026
Cash		6,367			7,066
Accounts receivable		8,240			10,027
Short-term notes payable		1,370			1,347
Long-term debt		20,920			25,136
Net fixed assets		51,328			54,873
Accounts payable		4,704			5,244
Inventory		14,623			15,488
Dividends		1,950			1,818

  

Prepare a balance sheet for this company for 2018 and 2019. (Do not round intermediate calculations.)

Prepare an income statement for this company for 2018 and 2019. (Enter all answers as positive values. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. )

Answer 1

Income Statement:
				2018	2019
Sales revenue				21573	18936
Less: Cost of goods sold				4979	4907
Gross profit				16594	14029
Less: Expenses
Depreciation				1861.00	1936
Interest				895.00	1026.00
Other expenses				1046.00	924.00
Net Income before tax				12792.00	10143.00
Less: Tax @ 24%				3070	2434
After tax Income				9722.00	7709.00
Statement of Retained earnings
				2018	2019
Beginning balance of Retained earnings				0	7772
Add: After tax income				9722	7709
Sub-total				9722	15481
Less: Dividend paid				1950	1818
Ending balance of Retained earnings				7772	13663
Balance Sheet for 2018
Assets
Current assets:
Cash			6367.00
Accounts recievable			8240.00
Inventory			14623
Total current assets				29230
Net fixed assets				51328
Total assets				80558
Liabilities and stockholder's equity
Liabilities:
Accounts payable			4704
Short term note payable			1370
Long term debts			20920
Total liabilities				26994
Stockholder's equity:
Common Stock capital		(balancing figure)		45792	(80558-26994-7772)
Retained earnings				7772
Total liabilities and Stockholder's equity				80558
Balance Sheet for 2019
Assets
Current assets:
Cash			7066.00
Accounts recievable			10027.00
Inventory			15488
Total current assets				32581
Net fixed assets				54873
Total assets				87454
Liabilities and stockholder's equity
Liabilities:
Accounts payable			5244
Short term note payable			1347
Long term debts			25136
Total liabilities				31727
Stockholder's equity:
Common Stock capital		(balancing figure)		42064	(87454-31727-13663)
Retained earnings				13663
Total liabilities and Stockholder's equity				87454