The CFO for Fin Tackle Company, a manufacturer of fine fishing supplies has provided you the following information from his company records. From the information presented prepare a properly formatted, multi-step Income Statement (i.e. showing intermediate profit lines Gross Profit, EBITDA, NOI, EBIT, EBT, and NI, as necessary). Per Share presentation of income data is not being requested.
Balance sheet account information is as of the close of business for December 31, 2006 unless otherwise indicated. Income statement information is applicable for the entire calendar year 2006 unless otherwise indicated. The company's income tax rate is 40%. The company did not purchase or dispose any depreciable long-term assets. (Watch out you may have more information than is needed to complete this problem).
Sales/Revenues ....................... $500,000
Property Tax Expense .....................$80,000
Cash ............................$10,000
Selling Expenses ........................$20,000
Unearned Revenues ......................$15,000
Prepaid Insurance ......................$10,000
General and Administrative Expenses ..............$15,000
Purchase of Goods for sale ...................$75,000
Inventory available for sale as of 1/1/2006 ............$100,000
Inventory available for sale as of 12/31/2006 ...........$95,000
Accum. Depreciation on Plant, Property, Equipment (as of 1/1/06) ... $120,000
Accum. Depreciation on Plant, Property, Equipment (as of 12/31/06) .. $150,000
Plant, Property, Equipment ..................$500,000
Long-term debt ........................$50,000
Dividends declared and paid to shareholders ...........$40,000
Dividend Income ......................$45,000
Interest Income .......................$3,000
Interest Expense ........................$2,000
Net Accounts Receivables ....................$15,000
Retained Earnings ........................$60,000
Infrequent loss associated with a weather event .............$3,000
Accounts Payable .......................$15,000
Bad Debt Expense ......................$5,000