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    Warner Company: Income Statement and Balance Sheet

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    Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items. See Word doc attached.

    a. What are the firm's net working capital, operating working capital, and debt ratio
    b. Complete a common-sized income statement and a common-sized balance sheet. Interpret your findings.

    ------------------------------------------------------------------------------------------------------
    Depreciation Expense................................................................ $66,000
    Cash.................................................................................... 225,000
    Long-term Debt....................................................................... 334,000
    Sales.................................................................................... 573,000
    Accounts Payable..................................................................... 102,000
    General and Administrative expense............................................... 79,000
    Buildings and equipment............................................................ 895,000
    Notes Payable......................................................................... 75,000
    Accounts Receivable................................................................. 153,000
    Interest Expense...................................................................... 4,750
    Accrued Expenses..................................................................... 7,900
    Common Stock........................................................................ 289,000
    Cost of goods sold................................................................... 297,000
    Inventory............................................................................... 99,300
    Taxes.................................................................................... 50,500
    Accumulated Depreciation.......................................................... 263,000
    Prepaid Expenses..................................................................... 14,500
    Taxes Payable........................................................................ 53,000
    Retained Earnings.................................................................... 262,900

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    https://brainmass.com/business/working-capital-management/warner-company-income-statement-and-balance-sheet-186592

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    Solution Summary

    A balance sheet and income statement for the Warner Company has been prepared from the scrambled list of items. The the firm's net working capital, operating working capital, and debt ratio are calculated. A common-sized income statement and a common-sized balance sheet have also been prepared and interpreted.

    $2.19