Question

QUESTION 31

1. This and the next several questions will require you to complete Miasma Intelligence Technology, Inc.'s (MIT) annual balance sheet and regular income statement for year 1, which is presented below.
   
   You should write down each answer on scratch paper as you move through this part of the exam. Based on the balance sheet, income statements and the information included in the box below, determine the amount that should be in each empty box. ROUND YOUR ANSERS TO THE NEAREST DOLLAR ($).
   
   QUESTION: What is the total asset balance for year 1?
   
   

   Days in inventory		38		Income tax rate		28%
   Days in accounts payable		34		Operating expenses		19.5%
   Days in accounts receivable		41		Days in the year		365
   Gross profit		45%

   
     

   Balance Sheet

   Year 1

   Income Statement (Regular)

   Year 1

   Cash		$ 285,000		Revenue [sales]		$ 15,000,000
   Accounts receivable				Cost of sales
   Inventory				Gross profit
   Total current assets		$ 2,828,836		Operating expenses

   Property, plant and equipment

   $ 4,650,000

   Income before income taxes

   Other		$ 670,000		Income taxes
   Total assets				Net income
   Accounts payable

   Income taxes payable
   Current portion of long-term debt	$ 357,000
   Total current liabilities	$ 2,196,493

   Long-term debt		$ 1,198,500
   Total liabilities
   Common stock		$ 500,000

   Additional paid in capital

   $ 1,499,843

   Retained earnings
   Total equity

   Total liabilities and shareholders' equity

   $ 8,148,836

2. fill in blanks

Answer 1

Please refer the following image for the solution: