Question

Create a balance sheet and income statement using the following information: WIth proper financial statement formatting

Any missing information, please fill in.

Total Shareholder Equity

Long Term Debt: 3,650,000

Inventories: 350,000

Income Taxes: 85,000

Total Non-Operating Expenses, Net

Common stock: 100,000

Total Assets

Retained Earnings: 3,000,000

Cost of Goods Sold: 2,000,000

Interest Income: 20,000

Accounts Receivable: 1,500,000

General and Administrative Costs: 1,000,000

Accruals: 800,000

Preferred Stock

Net Earnings

Goodwill & Other Intangibles: 1,800,000

Net Revenue: 4,500,000

Earnings Before Income Taxes

Total Liabilities

Interest Expense: 90,000

Cash: 5,000,000

Total Operating Expenses

Treasuring stock: (3,500,000)

Total Liabilities and Shareholder's Equity

Depreciation and Amortization: 100,000

Net, Property, Plant, and Equipment: 300,000

Operating Profit

Additional Paid-in Capital: 2,000,000

Marketing and Advertising: 1,000,000

Prepaid Expenses: 310,000

Total Current Liabilities

Gross Profit  

Accounts Payable: 300,000

total current assets  

Answer 1

Income Statement
for the year ended...
Description	Amount	Amount
Gross Revenue	5000000
Less: Sales Return	500000
Net Revenue	4500000
Cost of Goods Sold	2000000
Gross Profit		2500000
Less: Opreating Expenses
General and Administrative Cost	1000000
Marketing and Advertising	1000000
Depriciation and Amortization	100000
Total Operating Expenses		2100000
Operating Profit		400000
Non-Operating Income
Interest Income		20000
Non-Operating Expense
Interset Expense	90000
Total Non-Operating expenses, Net		90000
Earning Before Income Tax		330000
Income Taxes		85000
Net Earnings		245000

Balance Sheet
For the year ended......
Description	Amount	Amount
Current Assets
Cash	5000000
Prepaid Expenses	310000
Inventories	350000
Accounts Receivable	1500000
Total Current Asset		7160000
Non-Current Assets
Property, Plant, Equipment	400000
Less: Accumulated Depriciation	100000
Net Property, Plant, Equipment	300000
Goodwill and Other intangibles	1800000
Total Non-Current Assets		2100000
Total Assets		9260000
Liabilities and Shareholders Equity
Current Liabilities
Accounts Payble	300000
Accruals	800000
Total Current Liabilities		1100000
Non-Current Liabilities
Long Term Debt		3650000
Total Liabilities		4750000
Shareholders Equity
Common Stock	100000
Preferred Stock	2665000
Additional Paid-In-Capital	2000000
Treasuring Stock	(3500000)
Retained Earnings	3000000
Net Earnings	245000
Total Shareholder Equity		4510000
Total Liability and Shareholders Equity		9260000

Notes

1)

Gross revenue and Sales Return are assumed in the question to match the requirement of the question. Net Revenue comes after the deduction of Sales return  from the Gross revenue.Thats why Gross Revenue and Sales Return are assumed.

2) A fictitious figure of $2665000 is assumed for Preferred Stock.