Question - (Review of financial statements) Prepare a balance sheet and income statement for the Terrence Company from the following scrambled list of items:
|
Depreciation expense
|
$66,000
|
|
Cash
|
225,000
|
|
Long-term debt
|
334,000
|
|
Sales
|
573,000
|
|
Accounts payable
|
102,000
|
|
General and administrative expense
|
79,000
|
|
Buildings and equipment
|
895,000
|
|
Notes payable
|
75,000
|
|
Accounts receivable
|
167,500
|
|
Interest expense
|
4,750
|
|
Accrued expenses
|
7,900
|
|
Common stock
|
289,000
|
|
Cost of goods sold
|
297,000
|
|
Inventory
|
99,300
|
|
Taxes
|
50,500
|
|
Accumulated depreciation
|
263,000
|
|
Taxes payable
|
53,000
|
|
Retained earnings
|
262,900
|
1. Prepare an income statement for the Terrence Company.
2. Prepare a balance sheet for the Terrence Company.
3. What can you say about the firm's financial condition based on these financial statements?