Show your work (use of formula, etc.) in solving the problems. Provide your answers/solutions in the answer space provided below. Answer all questions. 1. Data for Cary Company and its industry average follow. Balance Sheet as of Dec. 31 (Millions of Dollars) Assets Liabilities and Owner's Equity 2020 2020 Current Liabilities 75,500 Accts payable Current Assets Cash 127,000 A/R 330,000 Notes payable 84,000 Inventories 255,500 Other current liabilities 115,000 Total CA 661,000 Total CL 326,000 Long-term debt 282,500 Total Liabilities Common Equity 943,500 |Total Liabilities and Equity Net fixed assets 260,500 586,500 Net plant and equipment 357,000 Total Assets 943,500 Income statement for the year ending December 31 2020 Sales 1,800,500 COGS (1,458,000) Gross profit Fixed operating expenses except depreciation 342,500 (210,000) Earnings before interest, taxes, depre and amort (EBITDA) 132,500 Depreciation (40,000) EBIT (Opering income) 92,500 Interest expense (44,000) EBT (Taxable income) 48,500 Taxes (40%) (19,400) Net income 29,100

Show your work (use of formula, etc.) in solving the problems. Provide your answers/solutions in the answer space provided below. Answer all questions. 1. Data for Cary Company and its industry average follow. Balance Sheet as of Dec. 31 (Millions of Dollars) Assets Liabilities and Owner's Equity 2020 2020 Current Liabilities 75,500 Accts payable Current Assets Cash 127,000 A/R 330,000 Notes payable 84,000 Inventories 255,500 Other current liabilities 115,000 Total CA 661,000 Total CL 326,000 Long-term debt 282,500 Total Liabilities Common Equity 943,500 |Total Liabilities and Equity Net fixed assets 260,500 586,500 Net plant and equipment 357,000 Total Assets 943,500 Income statement for the year ending December 31 2020 Sales 1,800,500 COGS (1,458,000) Gross profit Fixed operating expenses except depreciation 342,500 (210,000) Earnings before interest, taxes, depre and amort (EBITDA) 132,500 Depreciation (40,000) EBIT (Opering income) 92,500 Interest expense (44,000) EBT (Taxable income) 48,500 Taxes (40%) (19,400) Net income 29,100

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 20P

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