Preparing a balance sheet and income statement. The accounting records of Jet Away Airlines reveal the following for the year ended September 30, 2008 (amounts in thousands):
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|
September 30
|
|
Balance Sheet Items
|
2008
|
2007
|
|
Accounts Payable . . . . . . . . . . . . . . . . .
|
$ 157,415
|
$ 156,755
|
|
Accounts Receivable . . . . . . . . . . . . . . .
|
88,799
|
73,448
|
|
Cash . . . . . . . . . . . . . . . . . . . . . . . . . .
|
378,511
|
418,819
|
|
Common Stock . . . . . . . . . . . . . . . . . . .
|
352,943
|
449,934
|
|
Current Maturities of Long-Term Debt . . .
|
11,996
|
7,873
|
|
Inventories . . . . . . . . . . . . . . . . . . . . .
|
50,035
|
65,152
|
|
Long-Term Debt . . . . . . . . . . . . . . . . . .
|
623,309
|
871,717
|
|
Other Current Assets . . . . . . . . . . . . . . .
|
56,810
|
73,586
|
|
Other Current Liabilities . . . . . . . . . . . .
|
681,242
|
795,838
|
|
Other Noncurrent Assets . . . . . . . . . . . .
|
4,231
|
12,942
|
|
Other Noncurrent Liabilities . . . . . . . . . .
|
844,116
|
984,142
|
|
Property, Plant, and Equipment (net) . . . .
|
4,137,610
|
5,008,166
|
|
Retained Earnings . . . . . . . . . . . . . . . .
|
2,044,975
|
2,385,854
|
|
|
|
|
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Income Statement Items
|
|
For the Year Ended
September 30, 2008
|
|
Fuel Expense . . . . . . . . . . . . . . .
|
|
$ 892,415
|
|
Interest Expense . . . . . . . . . . . .
|
|
22,883
|
|
Interest Income . . . . . . . . . . . . .
|
|
14,918
|
|
Maintenance Expense . . . . . . . . .
|
|
767,606
|
|
Other Operating Expenses . . . . . .
|
|
1,938,753
|
|
Sales Revenue . . . . . . . . . . . . . .
|
|
4,735,587
|
|
Salaries and Benefits Expense . . . .
|
|
1,455,237
|
a. Prepare a comparative balance sheet for Jet Away Airlines as of September 30, 2008, and September 30, 2007 in the format used in Exhibit 1.1. Classify each balance sheet item into one of the following categories: current assets, noncurrent assets, current liabilities, noncurrent liabilities, and shareholders' equity.
b. Prepare an income statement for Jet Away Airlines for the year ended September 30, 2008. Separate income items into revenues and expenses.
c. Prepare a schedule explaining the change in retained earnings between September 30, 2007, and September 30, 2008.