Reference no: EM132908218
Question - Based on the information provided below, prepare the following financial statements for CompuStores, a company that assembles and distributes personal computers:
-An income statement for the calendar year 2020
-A balance sheet on December 31, 2019
-A balance sheet on December 31, 2020
-Accounts receivable increased by $6.400.000 in 2020
-Profits in 2020 were taxed at 40%
-At the end of 2020, inventories equaled 10% of the year's sales
-The net book value of fixed assets at the end of 2019 was $76 million.
-Cost of goods sold, other than the direct labor expenses related to the assembling of computers, equaled 70% sales in 2020
-The average interest rate on short-and long-term borrowing in 2020 was 10% of the amount of funds borrowed at the beginning of the year.
-Accounts receivable at the end of 2020 equaled 12% of sales
-Accounts payable at the end of 2019 equal $30 million
-Depreciation expense was $9 million in 2020.
-The company owed its employees $4 million at the end of 2019, a year later, it owed them $1.810.000
-Material purchased in 2020 amounted to $228 million
-Selling, general and administrative expenses for 2020 were $18 million
-Fees related to a technical license amount to $4 million per year.
-Taxes payable in 2019 equaled $6 million, and the company paid in advance the same amount on December 15, 2019.
-The balance of long-term debt was $27 million at the end 2019, of which $4 million was due at year-end.
-Shares of common stocks were not issued and outstanding shares were not repurchased in 2020.
-Direct labor expenses equaled 11,25% sales
-Repayment of long-term debt is $4 million per year
-Inventories rose from $28 million at the end of 2019 to $32 million at the end of 2020.
-In 2020, one of the company's warehouse was enlarged at a cost of $14 million, which was partly financed with a $6 million long-term loan
-Dividend payments for 2020 were $9.360.000
-Accounts payable at the end of 2020 equaled 1,85 of a month of purchases
-Equity capital at the end of 2019 was $81 million
-At the end of 2019, the company had enough cash that it could have immediately paid one-fourth of its account payables, at the end of 2020, it could have paid only one-tenth.
-The company paid in advance $9.600.000 of taxes on December 15, 2020
-The Company's line of credit was $3 million at the end of 2019. A year later it increased by two-thirds
-In 2020, the company has a $2 million nonrecurrent loss related to the discontinuation of an old product line.
-The company prepaid $1.500.000 on rent and insurance in 2019, and $2.085.000 a year later.