Assume
that you are the president of Nuclear Company. At December 31, 2011,
the end of the first year of operations, the following financial data
for the company are available:
| Cash | $ | 25,000 |
| Receivables from customers (all considered collectable) | 12,000 | |
| Inventory of merchandise (based on physical count and priced at cost) | 90,000 | |
| Equipment owned, at cost less used portion | 45,000 | |
| Payables to suppliers of merchandise | 47,370 | |
| Salary payable for 2011 (on December 31, 2011, this was owed to an employee who wasaway because of an emergency and returned to work on January 10, 2012, at which time the payment was made) |
2,000 | |
| Total sales revenue | 140,000 | |
| Expenses, including the cost of the merchandise sold (excluding income taxes) | 89,100 | |
| Income taxes expense (at 30% of pretax profit); all paid during 2011 | ? | |
| Share capital, 7,000 shares outstanding | 87,000 | |
| No dividends were declared or paid during 2011. | ||
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| Required: | |
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1. |
Prepare a summarized income statement for the year ended December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) |
| NUCLEAR COMPANY | ||
| Summary Income Statement | ||
| For the Year Ended December 31, 2011 | ||
| Total sales revenue | $ | |
| Total expenses, excluding income taxes | ||
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| $ | ||
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2. |
Prepare a statement of financial position at December 31, 2011.(Be sure to list the accounts in order of their liquidity. Omit the “$” sign in your response.) |
| NUCLEAR COMPANY | ||
| Statement of Financial Position | ||
| As at December 31, 2011 | ||
| Assets | ||
| $ | ||
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| Total Assets | $ | |
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| Liabilities and Shareholdersâ Equity | ||
| Liabilities: | ||
| $ | ||
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| Total Liabilities | $ | |
| Shareholders’ Equity: | ||
| $ | ||
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| Total Shareholders’ Equity | ||
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| Total Liabilities and Shareholders’ Equity | ||
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