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. fill in the blanks by rearranging the items that are wrong: Balance Sheet Payables $ 35 Inventories $50 Less accumulated depreciation 120 Receivables 35 Total current assets ___?____ Total current liabilities __?____ Long-term debt $350 Interest expense $25 Property, plant, and equipment 520 Total liabilities ____?____ Net fixed assets ____?_____ Shareholders Equity $90 Total assets ? Total liabilities and shareholders equity ? Income Statement Net Sales $700 Cost of Goods Sold 580 Selling, general, and administrative expenses 38 EBIT ___?____ Debt due for repayment $25 Cash 15 Taxable income ? Federal plus other taxes $15 Depreciation 12 Net income ? what is the correct total for: a. current assets b. net fixed assets c. total assets d. current liabilities e. total liabilities
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.
fill in the blanks by rearranging the items that are wrong:
| Balance Sheet |
|
Payables $ 35 Inventories $50 Less accumulated Total current assets ___?____ Total current liabilities __?____ Long-term debt $350 Interest expense $25 Property, plant, and equipment 520 Total liabilities ____?____ Net fixed assets ____?_____ Shareholders Equity $90 Total assets ? Total liabilities and shareholders equity ? |
| Income Statement |
|
Net Sales $700 Cost of Goods Sold 580 Selling, general, and administrative expenses 38 EBIT ___?____ Debt due for repayment $25 Cash 15 Taxable income ? Federal plus other taxes $15 Depreciation 12 Net income ? |
what is the correct total for:
a. current assets
b. net fixed assets
c. total assets
d. current liabilities
e. total liabilities
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