Reference no: EM132704920

Several accounts and amounts from the financial statements of a recently opened Blue Rifle Coffee appear below for the year ending December 31, Year 1.

Equipment 43,600                                         Cash $ 10,600
Note payable, due 12-31-Yr 5 30,000        Dividends $12,000
Other operating expenses 6,500           Common stock $50,000
Sales revenue 120,000                     Retained earnings $37,000
Cost of goods sold 48,000                 Accumulated depreciation 17,000
Buildings 57,500                              Income tax expense 9,400
Salaries expense 11,300                   Inventory 7,200
Accounts receivable 3,900                  Accounts payable 5,800

Use the information provided to determine the answers to the following questions:

Question A. What is the total amount owed to Blue Rifle Coffee by its customers at the end of the year?

Question B. How much are total current assets?

Question C. How much does Blue Rifle Coffee owe to its short-term creditors at December 31, Year 1?

Question D. How much of Blue Rifle Coffee's profit did it distribute to shareholders during Year 1?

Question E. Prepare an income statement for Year 1 for Blue Rifle Coffee.