ACTG 1P91 Chapter Notes - Chapter 4: Statement Of Changes In Equity, Retained Earnings, Current Liability
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On December 31, 2016, the accounts inthe ledger of Monroe Entertainment Co. are listed below. Allaccounts have normal balances. At the beginning of the year,retained earning balance is $4,000.
Note Payable due 10/31/2018 | $ 10,000 |
Accounts Receivable | 6,000 |
Accumulated Depreciation- Equipment (Creditbalance) | 6,000 |
Dividends | 1,000 |
Cash | 16,000 |
Depreciation Expense | 5,000 |
Equipment | 12,000 |
Fees Earned | 50,000 |
Rent Expense | 6,000 |
Supplies | 2,000 |
Supplies Expense | 3,000 |
Wages Expense | 21,000 |
Wages Payable | 2,000 |
Q1. Generate the Income statement
Monroe Entertainment Company Income Statement | ||
For the Year Ended December 31, 2016 | ||
Revenues: | ||
S | ||
Total Revenue | ||
Expenses: | ||
Total Expenses: | ||
Net Income | $ |
Please generate Retained Earnings Statement based uponthe above information and net income youcalculated.
Monroe Entertainment Company
Retained Earnings Statement
For the Year Ended Dec 31, 2016
Retained Earnings at beginning of the year | $___________________ |
Net Income | _____________________ |
Less: Dividends | _____________________ |
Net Increase/(Decrease) in the end | ______________________ |
Retained Earnings at end of the year | $_____________________ |
Please generate Balance Sheet as of December 31, 2016.
Monroe Entertainment Company Balance Sheet | |||||
Dec 31, 2016 | |||||
Assets | Liabilities | ||||
$ | $ | ||||
Total Assets | $ | Total Liabilities and Shareholdersâ Equity | $ |
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2.
Marshall Inc. |
Comparative Retained Earnings Statement |
For the Years Ended December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Retained earnings, January 1 | $3,712,000.00 | $3,262,000.00 |
3 | Net income | 589,000.00 | 560,000.00 |
4 | Total | $4,301,000.00 | $3,822,000.00 |
5 | Dividends: | ||
6 | On preferred stock | $10,000.00 | $10,000.00 |
7 | On common stock | 100,000.00 | 100,000.00 |
8 | Total dividends | $110,000.00 | $110,000.00 |
9 | Retained earnings, December 31 | $4,191,000.00 | $3,712,000.00 |
Marshall Inc. |
Comparative Income Statement |
For the Years Ended December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Sales | $10,840,000.00 | $10,000,000.00 |
3 | Cost of goods sold | 6,000,000.00 | 5,440,000.00 |
4 | Gross profit | $4,840,000.00 | $4,560,000.00 |
5 | Selling expenses | $2,180,000.00 | $2,000,000.00 |
6 | Administrative expenses | 1,627,500.00 | 1,500,000.00 |
7 | Total operating expenses | $3,807,500.00 | $3,500,000.00 |
8 | Income from operations | $1,032,500.00 | $1,060,000.00 |
9 | Other income | 99,500.00 | 20,000.00 |
10 | $1,132,000.00 | $1,080,000.00 | |
11 | Other expense (interest) | 133,000.00 | 120,000.00 |
12 | Income before income tax | $999,000.00 | $960,000.00 |
13 | Income tax expense | 410,000.00 | 400,000.00 |
14 | Net income | $589,000.00 | $560,000.00 |
Marshall Inc. |
Comparative Balance Sheet |
December 31, 20Y2 and 20Y1 |
1 | 20Y2 | 20Y1 | |
2 | Assets | ||
3 | Current assets: | ||
4 | Cash | $1,050,000.00 | $950,000.00 |
5 | Marketable securities | 301,000.00 | 420,000.00 |
6 | Accounts receivable (net) | 584,000.00 | 500,000.00 |
7 | Inventories | 410,000.00 | 380,000.00 |
8 | Prepaid expenses | 109,000.00 | 20,000.00 |
9 | Total current assets | $2,454,000.00 | $2,270,000.00 |
10 | Long-term investments | 800,000.00 | 800,000.00 |
11 | Property, plant, and equipment (net) | 5,750,000.00 | 5,184,000.00 |
12 | Total assets | $9,004,000.00 | $8,254,000.00 |
13 | Liabilities | ||
14 | Current liabilities | $863,000.00 | $792,000.00 |
15 | Long-term liabilities: | ||
16 | Mortgage note payable, 6%, | $200,000.00 | $0.00 |
17 | Bonds payable, 4%, | 3,000,000.00 | 3,000,000.00 |
18 | Total long-term liabilities | $3,200,000.00 | $3,000,000.00 |
19 | Total liabilities | $4,063,000.00 | $3,792,000.00 |
20 | Stockholdersâ Equity | ||
21 | Preferred 4% stock, $5 par | $250,000.00 | $250,000.00 |
22 | Common stock, $5 par | 500,000.00 | 500,000.00 |
23 | Retained earnings | 4,191,000.00 | 3,712,000.00 |
24 | Total stockholdersâ equity | $4,941,000.00 | $4,462,000.00 |
25 | Total liabilities and stockholdersâ equity | $9,004,000.00 | $8,254,000.00 |
Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): Assume a 365-day year.
Asset turnover
Return on total assets
Return on common stockholders' equity
Earnings per share on common stock
Price-earnings ratio