Question 1
Use the data from the following financial statements to answer question 1:
Partial Income Statement Year Ending 2011
Sales Revenue $350,000
COGS $140,000
Fixed Costs $ 43,000
SG&A Expenses $ 28,000
Depreciation $ 46,000
Partial Balance Sheet 12/31/2010
Assets: Liabilities:
Cash $ 16,000 Notes Payable $ 14,000
Accounts Rec. $ 28,000 Accounts Payable $ 19,000
Inventories $ 48,000 Long-Term Debt $190,000
Fixed Assets $368,000 Owners' Equity:
Acc. Depreciation $142,000 Retained Earnings $ ???????
Intangible Assets $ 82,000 Common Stock $130,000
Partial Balance Sheet 12/31/2011
Assets: Liabilities:
Cash $ 26,000 Notes Payable $ 12,000
Accounts Rec. $ 19,000 Accounts Payable $ 24,000
Inventories $ 53,000 Long-Term Debt $162,000
Fixed Assets $448,000 Owners' Equity:
Acc. Depreciation $ ??????? Retained Earnings $ ??????
Intangible Assets $ 82,000 Common Stock $180,000
a) Complete the partial income statement if the company paid interest expense of $18,000 for 2011 and had an overall tax rate of 40% for 2011.
b) What are the net fixed assets for the years 2010 and 2011?