Highlight Construction Company
1. Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1
Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, the following financial data for the company are available:
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Cash
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$ 5,600
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Receivables from customers (all considered collectible)
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0,800
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Inventory of merchandise (based on physical count and priced at cost)
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81,000
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Equipment owned, at cost less used portion
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42,000
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Accounts payable owed to suppliers
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46,140
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Salary payable for 2014 (on December 31, 2014, this was owed to an employee who was away because of an emergency; will return around January 10, 2015, at which time the payment will be made)
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2,520
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Total sales revenue
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128,400
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Expenses, including the cost of the merchandise sold (excluding income taxes)
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80,200
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Income taxes expense at 30% × pretax income; all paid during 2014
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?
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Common stock (December 31, 2014)
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87,000
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Dividends declared and paid during 2014
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10,000
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(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
Required:
1. Prepare a summarized income statement for the year 2014.
2. Prepare a statement of stockholders' equity for the year 2014
3. Prepare a balance sheet at December 31, 2014.
2. Finding Financial Information
Refer to the financial statements of Urban Outfitters in Appendix C at the end of this book.
Required:
1. What is the amount of net income for the most recent year?
2. What amount of revenue was earned in the most recent year?
3. How much inventory (in dollars) does the company have as of January 31, 2012?
4. By what amount did cash and cash equivalents * change during the most recent year?
5. Who is the auditor for the company?