Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability.

 

a.Prepare the balance sheet and income statement by rearranging the above items.

b.In the process of constructing the balance sheet, please show me the total current assets, total assets, total current liabilities, and total liabilities.

c.In the process of constructing the income statement, please calculate the gross profit, operating profit (EBIT),taxable income and net profit.

Balance Sheet
Income Statement
Payables
Less accumulated depreciation
Long-term debt
$35
Net Sales
$700
120
Cost of goods sold
580
Selling, general, and adminstrative expens
Debt due for repayment
350
38
Property, plant, and equipment
520
25
Inventories
50
Cash
15
Receivables
35
Таxes
15
Interest expense
25
Depreciation
12
Shareholders' equity
90
Transcribed Image Text:Balance Sheet Income Statement Payables Less accumulated depreciation Long-term debt $35 Net Sales $700 120 Cost of goods sold 580 Selling, general, and adminstrative expens Debt due for repayment 350 38 Property, plant, and equipment 520 25 Inventories 50 Cash 15 Receivables 35 Таxes 15 Interest expense 25 Depreciation 12 Shareholders' equity 90
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