P23-1A The Lacal company
Comparative income Statement
For the Years Ended December 31, 2013 and 2012
Less Sales Returns and Allowances 15,000 9,000
Net Sales 890,000 756,000
Net purchases 306,000 262,000
Total merchandise available for sale 390,000 342,000
Less merchandise inventory, December 31 86,000 84,000
Cost of goods sold 304,000 258,000
Gross profit on sales 586,000 498,000
Operating Expenses
Selling expenses
Sales salaries expense 87,000 80,000
Payroll Tax Expense-selling 8,700 8,000
Other selling expenses 25,200 15,200
Total selling expenses 120,900 103,200
General and administrative expenses
Officers salaries expense 130,000 110,000
Payroll tax expense-administrative 13,000 11,000
Depreciation expense 8,250 8,250
Other general and administrative expenses 9,450 7,000
Total operating expenses 281,600 239,450
Net income before income taxes 304,400 258,550
Income tax expense 91,320 71565
Net income after income taxes 213,080 180,985
December 31, 2013 and 2012
Assets
Current assets
Cash 111,022 46,275
Accounts receivable 95,000 87,500
Merchandise inventory 86,000 84,000
Prepaid expenses 9,500 5,000
Supplies 1,200 500
Total current assets 302,722 223,275
Property, plant and equipment
Land 75,000 75,000
Building and equipment 82,500 82,500
Less accumulated depreciation (33,000) (24,750)
Net book value-building and equipment 49,500 57,750
Total property, plant, and equipment 124,500 132,750
Total assets 427,222 356,025
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable 27,000 57,000
Sales tax payable 1,000 3,000
Payroll taxes payable 1,142 1,025
Income taxes payable 1,000 5,000
Total current liabilities
Long-term liabilities
Mortgage payable 39,000 45,000
Total long term liabilities 39,000 45,000
Stockholders’ Equity
Common stock ($1 par, 10,000 shares authorized
10,000 shares issued and outstanding) 10,000 10,000
Paid in capital- common stock 10,000 10,000
Retained earnings 338,080 225,000
Total stockholders’ equity 358,080 245,000
Total liabilities and stockholders’ Equity 427,222 356,025
File name: P23-1A The Lacal com.xls File type: xls PRICE: $15
Comparative income Statement
For the Years Ended December 31, 2013 and 2012
Revenue:
2013
2012
Sales
905,000
765,000Less Sales Returns and Allowances 15,000 9,000
Net Sales 890,000 756,000
Cost
of Goods Sold
Merchandise
inventory, January 1 84,000 80,000Net purchases 306,000 262,000
Total merchandise available for sale 390,000 342,000
Less merchandise inventory, December 31 86,000 84,000
Cost of goods sold 304,000 258,000
Gross profit on sales 586,000 498,000
Operating Expenses
Selling expenses
Sales salaries expense 87,000 80,000
Payroll Tax Expense-selling 8,700 8,000
Other selling expenses 25,200 15,200
Total selling expenses 120,900 103,200
General and administrative expenses
Officers salaries expense 130,000 110,000
Payroll tax expense-administrative 13,000 11,000
Depreciation expense 8,250 8,250
Other general and administrative expenses 9,450 7,000
Total operating expenses 281,600 239,450
Net income before income taxes 304,400 258,550
Income tax expense 91,320 71565
Net income after income taxes 213,080 180,985
THE LACAL COMPANY
Comparative Balance SheetDecember 31, 2013 and 2012
Assets
Current assets
Cash 111,022 46,275
Accounts receivable 95,000 87,500
Merchandise inventory 86,000 84,000
Prepaid expenses 9,500 5,000
Supplies 1,200 500
Total current assets 302,722 223,275
Property, plant and equipment
Land 75,000 75,000
Building and equipment 82,500 82,500
Less accumulated depreciation (33,000) (24,750)
Net book value-building and equipment 49,500 57,750
Total property, plant, and equipment 124,500 132,750
Total assets 427,222 356,025
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable 27,000 57,000
Sales tax payable 1,000 3,000
Payroll taxes payable 1,142 1,025
Income taxes payable 1,000 5,000
Total current liabilities
Long-term liabilities
Mortgage payable 39,000 45,000
Total long term liabilities 39,000 45,000
Stockholders’ Equity
Common stock ($1 par, 10,000 shares authorized
10,000 shares issued and outstanding) 10,000 10,000
Paid in capital- common stock 10,000 10,000
Retained earnings 338,080 225,000
Total stockholders’ equity 358,080 245,000
Total liabilities and stockholders’ Equity 427,222 356,025
TUTORIAL PREVIEW
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The Lacal company
Comparative income Statement
For the Years Ended December
31, 2013 and 2012
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Amounts
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Percent of Sales
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Increase or Decrease
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Revenue:
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2013
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2012
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2013
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2012
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Amount
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Percent
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Sales
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905,000
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765,000
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101.7%
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101.2%
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140,000
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18.3%
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Less
sales Returns and Allowances
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15,000
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9,000
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1.7%
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1.2%
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6,000
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66.7%
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Net
sales
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890,000
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756,000
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100.0%
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100.0%
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134,000
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17.7%
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