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Maxim Enterprises - Financial Statements Explanation

You are provided with the following information for Maxim Enterprises, effective as of its April 30, 2007, year-end.
Accounts payable $834
Accounts receivable 810
Building, net of accumulated depreciation 1,537
Cash 770
Common stock 900
Cost of goods sold 990
Current portion of long-term debt 450
Depreciation expense 335
Dividends paid during the year 325
Equipment, net of accumulated depreciation 1,220
Income tax expense 165
Income taxes payable 135
Interest expense 400
Inventories 967
Land 1,600
Long-term debt 3,500
Prepaid expenses 12
Retained earnings, beginning 1,600
Revenues 3,600
Selling expenses 210
Short-term investments 1,200
Wages expense 700
Wages payable 222

Complete an income statement, a retained earnings statement and a classified balance sheet for Maxim Enterprises for the year ended April 30, 2007.


Solution Summary

This solution is comprised of a detailed explanation to prepare the balance sheet, income statement, and statement of retained earnings for Maxim Enterprises for the year ended April 30, 2007.