INTRODUCTION TO FINANCIAL ACCOUNTING - Essay Example

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INTRODUCTION TO FINANCIAL ACCOUNTING

expense 4500 Paid-in capital 90000 Property taxes 6500 Rent 22000 Retained earnings 146400 Revenues 619900 Salaries 61940 Utilities 7400 Totals 985800 985800 Picket company Income Statement as of December 31, 2012 Revenues 619900 Cost of goods sold 402610 Gross margin 217290 Expenses Depreciation expense 18250 Insurance expense 1500 Marketing expense 5600 Misc. expense 4500 Property taxes 6500 Rent 22000 Salaries 61940 Utilities 7400 Total expenses 127690 Net Income 89600 Picket Company Balance Sheet as of December 31, 2012 Current Assets Cash 42000 Account Receivable 18000 Inventory 70500 Total current assets 130500 Property, Plant, Equipment 325000 Total Assets 455500 Current Debt Account Payable 14500 Long term debt 105000 Total debt 119500 Stockholders equity Common stock 10000 Paid-in Capital 90000 Retained earnings 236000 Total equity 336000 Total equity plus liabilities 455500 Pickett Company in 2012 had a profitable year due to the fact that its net income was $89,600. A company is profitable when it obtain a positive net income. The gross margin of the firm was 35.05%. This financial metric is considered a broad measure of profitability. ...Show more

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Picket Company Trial Balance Debit Credit Account payable 14500 Account receivable 18000 Cash 41500 Common stock 10000 Depreciation expense 18250 Cost of goods sold 402610 Equipment 325000 Insurance 1500 Inventory 80500 Long term debt 105000 Marketing expense 5600 Misc…
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