Determine the cash balance


Comprehensive Financial Statement Preparation

The following information was obtained from the records of Wilcox, Inc., as of December 31,2006.

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,500
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . .  197,550
Salaries expense . . . . . . . . . . . . . . . . . . . . . .  125,350
Utilities expense . . . . . . . . . . . . . . . . . . . . . .       5,250
Accounts payable . . . . . . . . . . . . . . . . . . . . .   $ 38,050
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . .   389,950
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . .    72,500
Retained earnings (1/1/06) . . . . . . . . . . . . . . .  311,000
Capital stock (2,000 shares outstanding) . . . .      65,000
Accounts receivable . . . . . . . . . . . . . . . . . . .      90,000
Supplies expense . . . . . . . . . . . . . . . . . . . . .    110,600
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       ?
Notes payable (long-term) . . . . . . . . . . . . . . .     63,800
Rent expense . . . . . . . . . . . . . . . . . . . . . . . .     21,200
Dividends in 2006 . . . . . . . . . . . . . . . . . . . . .     95,500
Other expenses . . . . . . . . . . . . . . . . . . . . . . .    11,250
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . .   35,000

Required:

1.Prepare an income statement for the year ended December 31, 2006.

2.Prepare a balance sheet as of December 31, 2006. What is the cash balance?

3.Why is the balance in Retained Earnings so large as compared with the balance in Capital Stock?

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Finance Basics: Determine the cash balance
Reference No:- TGS01824906

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