Preparing balance sheet and income statement


#1. (Balance sheet and income statement) Johnsons Scuba Co. has a weird accountant who reported the balance sheet and income statement items in alphabetical order. Please put these items in the correct format for a balance sheet and income statement for Johnsons
Scuba Co. for the year ending January 31. All of the data are in thousands of dollars.
Accounts payable 500
Accounts receivable 700
Addition to retained earnings 400
Cash and equivalents 300
Common stock 500
Cost of goods sold 2,000
Depreciation 200
Dividends on common shares 100
Earnings before interest and taxes 800
Earnings before taxes 750
Gross profit 2,000
Interest expense 50
Inventories 500
Long-term debt 1,000
Net income 500
Net plant and equipment 3,000
Notes payable 250
Other current liabilities 400
Retained earnings 1,850
Sales 4,000
Selling, general, and administrative expenses 1,000
Taxes 250
Total assets 4,500
Total current assets 1,500
Total liabilities and equity 4,500
Total current liabilities 1,150
Total liabilities 2,150

#2. (Statement of cash flows) Johnsons accountant also presented all of the items in the statement of cash flows in alphabetical order. Please put these items in the correct format for a statement of cash flows for Johnsons Scuba Co. for the year ending January 31. All data are
in thousands of dollars.
Accounts payable increase 100
Accounts receivable increase (50)
Cash dividends (common stock) (200)
Cash and equivalents at beginning of year 300
Cash and equivalents at end of year 150
Depreciation and amortization 200
Increase in other long-term liabilities 0
Inventories increase (200)
Issuance of long-term debt, net 100
Net cash provided by (used in) financing activities 0
Net cash provided by (used in) investing activities (700)
Net cash provided by (used in) operating activities 550
Net income 500
Net increase in cash and equivalents (150)
Notes payable increase 100
Purchase of plant and equipment (700)

#3. (Financial statements) For the year ended December 31, Dutch Retail, Inc., recorded the items listed here. Prepare an income statement for the year ended December 31 for Dutch Retail, Inc. Please use an appropriate format, such as the one in Table 3-2.
Cost of goods sold $200
Interest expense 100
Preferred dividends paid 50
Common dividends paid 100
Selling expenses 65
Administrative expenses 100
Depreciation expense 150
Sales revenues 900
Taxes = 40% of taxable income

#4. (Financial statements) For the year, Pennsylvania Construction has a cash flow from operating activities of $1,000,000, a cash flow from investing activities of â?'$600,000, and a cash flow from financing activities of â?'$200,000. If Pennsylvania Construction has a beginning cash balance for the year of $500,000, what is the company ending
cash balance?

#5. (Financial statements) Ivan Brick Company earned net income after taxes of $850,000 during the latest year. Retained earnings on its balance sheet equaled $1,740,000 on December 31, last year and $2,040,000 on December 31, the latest year. What cash dividends did Ivan Brick Company pay during the latest year?

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Finance Basics: Preparing balance sheet and income statement
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