Using the adjusted trial balance on the next page calculate

Using the adjusted trial balance on the next page, calculate the following financial statement numbers. Show your work. 20 points. A. Retained earnings B. Net Income C. Operating Income D. Total Stockholders\' Equity E. Current Assets F. Total Assets

Solution

Income statement :

a) Retained earnings = 61000+91800 = 152800

b) Net income = 91800

c) Operating income = 149200

d) Total Stockholder\'s equity = 9300+305200+16700+152800-45000 = 439000

e) Current assets = 95000+13000-800+6700 = 113900

f) Total assets = 113900+12000+430000-68000 = 487900

Service revenue		213000
Sales revenue	298000
Less: Sales returns and allowance	-1900
Net sales		296100
Total revenue		509100
Less: Cost of goods sold		-164000
Gross profit		345100
Less: Expense
Depreciation expense	-100000
Rent expense	-74000
Insurance expense	-2900
Salaries expense	-19000
Total expense		-195900
Operating income		149200
Gain from the disposal of equipment		8200
Interest expense		-1000
Income before tax		156400
Less: Income tax expense		-64600
Net income		91800