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Comprehensive Financial Statement

Comprehensive Financial Statement Preparation
The following information was obtained from the records of Wilcox, Inc., as of December 31,2006.
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,500
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,550
Salaries expense . . . . . . . . . . . . . . . . . . . . . . 125,350
Utilities expense . . . . . . . . . . . . . . . . . . . . . . 5,250
Accounts payable . . . . . . . . . . . . . . . . . . . . . $ 38,050
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . 389,950
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,500
Retained earnings (1/1/06) . . . . . . . . . . . . . . . 311,000
Capital stock (2,000 shares outstanding) . . . . 65,000
Accounts receivable . . . . . . . . . . . . . . . . . . . 90,000
Supplies expense . . . . . . . . . . . . . . . . . . . . . 110,600
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?
Notes payable (long-term) . . . . . . . . . . . . . . . 63,800
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . 21,200
Dividends in 2006 . . . . . . . . . . . . . . . . . . . . . 95,500
Other expenses . . . . . . . . . . . . . . . . . . . . . . . 11,250
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . 35,000
Required:
1.Prepare an income statement for the year ended December 31, 2006.
2.Prepare a balance sheet as of December 31, 2006. What is the cash balance?
3.Why is the balance in Retained Earnings so large as compared with the balance in Capital Stock?

Solution Summary

Excel file contains income statement and balance sheet.

$2.19