Problem: Financial Statement Preparation
WestSmith Telecomm is a telecommunications company. The following information applies to WestSmith for the fiscal years ended December 31, 2004 (dollars in millions).
Accounts receivable 14,400
Accrued liabilities 3,240
Accumulated deprecation 25,920
Administrative expenses 6,240
Advertising expense 12,000
Cash and cash equivalents 8,292
Common stock 36,000
Depreciation expense 4,320
Income tax expense 3,528
Prepaid expenses 960
Property, plant, and equipment 52,800
Rent expense 5,760
Retained earnings 9,252
Service revenue 110,400
Supplies 240
Taxes payable 2,280
Wages and salaries expense 72,000
The following balances were found on West Smith's 2003 financial statements.
Accounts receivable 16,800
Accrued liabilities 3,960
Accumulated deprecation 21,600
Cash and cash equivalents 4,200
Common stock 36,000
Prepaid expenses 792
Property, plant, and equipment 48,000
Retained earnings 6,540
Supplies 444
Taxes payable 2,136
Required:
Prepare a set of financial statements (income statement, statement of stockholders' equity, balance sheet, and statement of cash flows) for the year ended December