Prepare a balance sheet and income statement

Assignment Help Accounting Basics

Reference no: EM1372209

1. Review of financial statements) Make a balance sheet and income statement as of December 31, 2003, for Sharpe Manufacturing Company from the following information.

Accounts receivable $120,000
Machinery and equipment 700,000
Accumulated depreciation 236,000
Notes payable 100,000
Net sales 800,000
Inventory 110,000
Accounts payable 90,000
Long-term debt 160,000
Cost of goods sold 500,000
Operating expenses 280,000
Common stock 320,000
Cash 96,000
Retained earnings prior year 100,000
Retained earnings current year ?

2. Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firms income before tax?

a. $4,360,000
b. $750,000
c. $10,865,000
d. $25,115,000

3. Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firms gross profit?

a. $18,000,000
b. $15,225,000
c. $5,000,110
d. $6,632,000

4. Your firm has the following balance sheet statement items: total current liabilities of $805,000; total assets of $2,655,000; fixed and other assets of $1,770,000; and long-term debt of $200,000. What is the amount of the firmâ??s total current assets?

a. $885,000
b. $1,550,000
c. $600,000
d. $325,000

Use the following information to answer the questions. A friend of yours is trying to determine whether to open a sandwich stand at the local mall based on the following data. She expects total fixed costs per year of $24,000, a sale price per sandwich of $3.00, and variable costs per sandwich of $1.80.

5. The break-even level of output for this endeavor is:
a. 12,000.
b. 16,000.
c. 20,000.
d. 24,000.

6. The break-even point in sales dollars is:
a. $60,000.
b. $54,000.
c. $46,000.
d. $30,000.

7. Dudes Skateboards Enterprises has fixed costs of $225,000. Dudes skateboards sell for $45 each and have a variable cost of $20 each. What is Dudes break-even point in units?
a. 8,500
b. 8,750
c. 9,000
d. 9,250

8. Wahoo, Inc. is currently on schedule to sell 200,000 units of its most popular product. The firmâ??s average selling price per unit is $16.00. Variable cost per unit is $11.00. Interest expense is running at $50,000 per year, while fixed costs total $800,000. What is the firmâ??s break-even point in sales?
a. $3,240,000
b. $2,560,000
c. $1,720,000
d. $980,000

Reference no: EM1372209

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