Answer:
<u>BALANCE SHEET</u>
Assets Liabilities
Cash 10,000 Account Payable 17,000
Account Receivable 22,000 Long term 170,000
Inventory 200,000 Total Liab 187,000
non-current assets 100,000 Equity 145,000 (A)
total assets 332,000 Total liab + SE 332,000
Earnings before interest and taxes: 11,000 dolllars
Net income 8,000
Explanation:
(A) solve through the accounting equation
assets = laib + equity
332,000 = 187,000 + Equity = 332,000 - 187,000 = 145,000
Q4
income tax expense: 2,000
rate 20%
Earnings before taxes x 20% = 2,000
EBT = 2,000 / 0.2 = 10,000
Net income : 10,000 - 2,000 = 8,000
EBIT: EBT + interest expense
10,000 + 1,000 = 11,000
