Middlesex Manufacturing Company

Six Figure Business Credit

Secrets To Building Business Credit

Get Instant Access

The following list gives all the financial categories of Middlesex Manufacturing Company, Inc. For each item in the list, identify whether it belongs on the balance sheet or the income statement and write the number in the correct places. Correctly placing the numbers will provide you with an excellent review of the structure and content of the financial statements.

Corporate Income Tax Expense $ 2,000

Accounts Receivable 3,000

Telephone Expense 7,000

Cost of Goods Sold 140,000

Wages Expense 29,000

Total Current Assets 12,000

Advertising Expense 10,000

Inventory, End of Year 7,000

Net Other Income/(Expense) (1,000)

Beginning Balance, Retained Earnings 5,000

Dividends 2,000

Accounts Payable 6,000

Gross Profit 30%

Accumulated Depreciation 14,000

Buildings 50,000

Cash 2,000

Depreciation Expense

5,000

Total Operating Expenses

51,000

Common Stock

26,000

Purchases, Net

138,000

Inventory, Beginning of Year

9,000

Total Stockholders' Equity

35,000

Machinery & Equipment

12,000

Ending Balance, Retained Earnings

9,000

Mortgage Payable

19,000

Revenue

200,000

Middlesex Manufacturing Company, Inc. Balance Sheet

Assets

Current Assets

Total Current Assets $

Fixed Assets

Net Fixed Assets $

Liabilities & Stockholders Equity

Current Liabilities

Total Current Liabilities $

Long Term Debt _

Total Liabilities $

Stockholders' Equity

Total Stockholders' Equity _

Total Liabilities & Stockholders' Equity $

Middlesex Manufacturing Company, Inc. Income Statement

Cost of Goods Sold Calculation

Beginning Inventory

= Goods Available For Sale — Ending Inventory

Operating Expenses

Total Operating Expenses $_

Income From Operations $

Net Other Income (Expense) $_

Net Income Before Tax $

Corporate Income Tax Expense $_

Statement of Retained Earnings

Beginning Balance, Retained Earnings $

= Ending Balance, Retained Earnings $

Appendix A Answer Key

Middlesex Manufacturing Company, Inc. Balance Sheet

Assets

Current Assets

* Accounts Receivable 3,000...

Total Current Assets $12,000

Fixed Assets

* Furniture and Equipment $12,000...

Net Fixed Assets $48,000 Total Assets $60,000

Liabilities & Stockholders Equity

Current Liabilities

Total Current Liabilities $ 6,000

Long-Term Debt $19,000

Total Liabilities $25,000

Stockholders' Equity

Total Stockholders' Equity $35,000

Total Liabilities and Stockholders' Equity . _$60,000

Middlesex Manufacturing Company, Inc. Income Statement

Revenue

Cost of Goods Sold Calculation

Beginning Inventory

+ Purchases

= Goods Available for Sale — Ending Inventory

= Cost of Goods Sold Gross Profit

Operating Expenses

* Telephone

* Advertising

* Depreciation

Total Operating Expenses Income From Operations ...

Net Other Income (Expense) ...

Net Income Before Tax

Corporate Income Tax Expense Net Income (Loss)

140,000 70%

51,000

$

9,000

(1,000)

$

8,000

2,000

$

6,000

Statement of Retained Earnings

Beginning Balance, Retained Earnings

= Ending Balance, Retained Earnings

Appendix B

Was this article helpful?

0 0

Post a comment