Q1) 20X8 comparative balance sheet and income statement of Genie Marketing, Inc., follows, Genie had no noncash investing and financing transactions in 20X8. In the year, there were no sales of land or equipment, no issuances of notes payable, no retirements of stock, and no treasury stock transactions.
How will what you learned in this problem help you estimate the investment and variable costing Plant assets:
| Comparative Balance Sheet |
| |
20X8 |
20X7 |
Increase (Decrease) |
| Current assets: |
| Cash and cash equivalents |
$8,700 |
$15,600 |
($6,900) |
| Accounts receivanle |
46,500 |
43,100 |
3,400 |
| Interest receivable |
600 |
900 |
(300) |
| Inventories |
94,300 |
89,900 |
4,400 |
| Prepaid expenses |
1,700 |
2,200 |
(500) |
| Plant assets: |
| Land |
35,100 |
10,000 |
25,100 |
| Equipment, net |
100,900 |
93,700 |
7,200 |
| Total assets |
$287,800 |
$225,400 |
$32,400 |
| Current liabilities: |
| Accounts payable |
$16,400 |
$17,900 |
($1,500) |
| Interest payable |
6,300 |
6,700 |
(400) |
| Salary payable |
2,100 |
1,400 |
700 |
| Other accured liabilities |
18,100 |
18,700 |
(600) |
| Income tax payable |
6,300 |
3,800 |
2,500 |
| Long-term liabilities: |
| Notes payable |
55,000 |
65,000 |
(10,000) |
| Stockholder equity: |
| Common stock, no=par |
131,100 |
122,300 |
8,800 |
| Retained earnings |
52,500 |
19,600 |
32,900 |
| Total liabilities and stockholder\'s equity |
$287,800 |
$255,400 |
$32,400 |