Suppose you are given the folowing fnancial statement inform

Suppose you are given the folowing fnancial statement information Prepare an income statement for 2014 and 2015, and a Balance Sheet tor -2ot4 and 2015. et couae tre s 2014. (Round to 2 decimal places) 2014 2015 3,753 4,501 1,200 1.608 604 877 Cost of goods sold 2,164 2.3 1334 1,858 ,508670 357 415 1836 2.07 Accounts payable Total Equity Long term debr 2,332 30% 30% 321

Solution

Income statement for 2014 Sales 5506 Less- Cost of goods sold 3753 Gross profit 1753 Less- Depreciation 684 Interest 53 Profit before tax 1016 Less- Tax @ 30% 305 Profit after tax 711 Less- Dividend 321 Retained earnings 390 Income statement for 2015 Sales 6780 Less- Cost of goods sold 4591 Gross profit 2189 Less- Depreciation 877 Interest 133 Profit before tax 1179 Less- Tax @ 30% 354 Profit after tax 825 Less- Dividend 326 Retained earnings 499 Balance sheet (2014) Accounts payable 2154 Cash 1200 Long term debt 1636 Accounts receivable 357 Inventory 1858 Total Equity 1334 Fixed Assets 2099 Retained earnings 390       5514 5514 Balance sheet (2015)    Accounts payable 2663 Cash 1606 Long term debt 2078 Accounts receivable 415 Inventory 2332 Total Equity 1858 Fixed Assets 2745 Retained earnings 499 7098 7098