The CFO for Fin Tackle Company, a retailer of fishing supplies,


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The CFO for Fin Tackle Company, a retailer of fishing supplies, has provided you the following information from the company’s accounting records. From the information presented, prepare a properly formatted, multi-step Income Statement (i.e. showing ALL of the appropriate intermediate profit point lines). Per share presentation of income data is not being requested. Balance sheet account information is as of the close of business for December 31, 2012 unless otherwise indicated. Income statement information is applicable for the entire calendar year 2012 unless otherwise indicated. The company’s income tax rate is 35%. The company did not purchase or dispose of any depreciable long-term assets. (Watch out – you may have more information than is needed to complete this problem). Sales/Revenues $600,000 Property Tax Expense 80,000 Cash 10,000 Selling Expenses 20,000 Unearned Revenues 15,000 Prepaid Insurance 10,000 General and Administrative Expenses 15,000 Purchases of Goods for sale 75,000 Inventory available for sale as of 1/1/2012 100,000 Inventory available for sale as of 12/31/2012 95,000 Accum. Depreciation on Plant, Property, Equipment (as of 1/1/12) 120,000 Accum. Depreciation on Plant, Property, Equipment (as of 12/31/12) 160,000 Plant, Property and Equipment 500,000 Long-term debt 50,000 Dividends declared and paid to shareholders 40,000 Dividend Income 45,000 Interest Income 3,000 Interest Expense 12,000 Net Accounts Receivable 15,000 Retained Earnings 60,000 Infrequent expense associated with a weather event 3,000 Accounts Payable 15,000 Bad Debt Expense 10,000 WarrenBuffet
posted a question ยท Jul 28, 2013 at 9:37pm

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