The following financial statements apply to the next six problems, 13s.12-13s.18. Inland Manufacturing Balance Sheet (Dollars in millions) December 31, 2011, December 31, 2010 Cash $400 $300 Account receivables 560 450 | Inventory 790 550 Total current assets $1,750 $1,300 Total fixed assets 1,200 1,210 Total assets $2,950 $2,510 Inland Manufacturing Income Statement December 31, 2011 (continued) Account payable Note payable $350 $250 (Dollars in Millions) 470 330 Labor 850 Other current liabilities 220 130 Overhead 230 Total current liabilities $1,040 $710 Depreciation Gross profit 400 $1,710 Long-term debt Common equity Total liabilities and equity 580 580 $740 $1,330 $1,220 Selling expenses General and administrative expenses 40 $2,950 $2,510 60 $640 Eanings before interest and taxes (EBIT) Interest expenses Inland Manufacturing Income Statement December 31, 2011 (Dollars in Millions) 25 Earnings before income taxes Provision for income taxes (40%) Gross sales $2,450 $615 Cost of goods sold: 246 Materials $230 Net income $369

The following financial statements apply to the next six problems, 13s.12-13s.18. Inland Manufacturing Balance Sheet (Dollars in millions) December 31, 2011, December 31, 2010 Cash $400 $300 Account receivables 560 450 | Inventory 790 550 Total current assets $1,750 $1,300 Total fixed assets 1,200 1,210 Total assets $2,950 $2,510 Inland Manufacturing Income Statement December 31, 2011 (continued) Account payable Note payable $350 $250 (Dollars in Millions) 470 330 Labor 850 Other current liabilities 220 130 Overhead 230 Total current liabilities $1,040 $710 Depreciation Gross profit 400 $1,710 Long-term debt Common equity Total liabilities and equity 580 580 $740 $1,330 $1,220 Selling expenses General and administrative expenses 40 $2,950 $2,510 60 $640 Eanings before interest and taxes (EBIT) Interest expenses Inland Manufacturing Income Statement December 31, 2011 (Dollars in Millions) 25 Earnings before income taxes Provision for income taxes (40%) Gross sales $2,450 $615 Cost of goods sold: 246 Materials $230 Net income $369

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...

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