Question

Use the following information for Taco Swell, Inc., (assume the tax rate is 34 percent):

  

	2010			2011
Sales	$	11,573		$	12,936
Depreciation		1,661			1,736
Cost of goods sold		3,979			4,707
Other expenses		946			824
Interest		776			926
Cash		6,067			6,466
Accounts receivable		8,034			9,427
Short-term notes payable		1,171			1,147
Long-term debt		20,320			24,636
Net fixed assets		50,888			54,273
Accounts payable		4,384			4,644
Inventory		14,283			15,288
Dividends		1,411			1,618

  

Prepare a balance sheet of this company for 2010 and 2011. (Be sure to list the accounts in order of their liquidity.)

  

TACO SWELL, INC., Balance Sheet as of Dec. 31
	2010		2011
Assets
(Click to select)  Inventory  Cash  Notes payable  Accounts payable  Accounts receivable	$		$
(Click to select)  Owners' equity  Long-term debt  Notes payable  Accounts receivable  Accounts payable
(Click to select)  Accounts payable  Inventory  Net fixed assets  Notes receivable  Accounts receivable
Current assets
(Click to select)  Net fixed assets  Long-term debt  Notes receivable  Accounts payable  Accounts receivable
Total assets	$		$
Liabilities
(Click to select)  Cost of goods sold  Long-term debt  Net fixed aseets  Accounts payable  Accounts receivable	$		$
(Click to select)  Notes payable  Accounts payable  Notes receivable  Cash  Accounts receivable
Current liabilities
(Click to select)  Accounts receivable  Long-term debt  Cost of goods sold  Owners' equity  Cash
(Click to select)  Cost of goods sold  Accounts receivable  Owners' equity  Cash  Notes receivable
Total liabilities & owners' equity	$		$

    

Prepare an income statement for this company for 2010 and 2011. (Round your answers to 2 decimal places. (e.g., 32.16))

TACO SWELL, INC., Income Statement
	2010		2011
Sales	$		$
COGS
Other expenses
Depreciation
EBIT	$		$
Interest
EBT
Taxes (34%)
Net income
Dividends	$		$
Additions to RE

Answer 1

Income statement for 2010 and 2011 is shown below
TACO SWELL, INC.,
Income Statement
	2010	2011
Sales	$11,573.00	$12,936.00
COGS	$3,979.00	$4,707.00
Other expenses	$946.00	$824.00
Depreciation	$1,661.00	$1,736.00
EBIT	$4,987.00	$5,669.00
Interest	$776.00	$926.00
EBT	$4,211.00	$4,743.00
Taxes (34%)	$1,431.74	$1,612.62
Net income	$2,779.26	$3,130.38
Dividends	$1,411.00	$1,618.00
Additions to RE	$1,368.26	$1,512.38
Balance sheet for TACO swell inc is shown below
TACO SWELL, INC.,
Balance Sheet as of Dec. 31
	2010	2011
Assets
Cash	$6,067	$6,466
Accounts receivable	$8,034	$9,427
Inventory	$14,283	$15,288
Current assets	$28,384	$31,181
Net fixed assets	$50,888	$54,273
Total assets	$79,272	$85,454
Liabilities
Accounts payable	$4,384	$4,644
Short term notes payable	$1,171	$1,147
Current liabilities	$5,555	$5,791
Long term debt	$20,320	$24,636
Owner's equity	$53,397	$55,027
Total liabilities & owners' equity	$79,272	$85,454
Owner's equity is calculated as balancing figure total assets less current liabilities less long term debt