The following data were taken from the records of Archie and Sons Company at the...
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Accounting
The following data were taken from the records of Archie and Sons Company at the end of fiscal year 2020.
12/31/2020
12/31/2019
Increases (Decreases)
Accounts Receivable
150
175
(25)
Allowance for Doubtful Accounts
1
1.5
(0.5)
Inventory
312
250
62
Payables (related to inventory)
190
170
20
Taxes payable
50.5
100
(49.5)
Deferred tax liability
23
19
4
In addition the following data are available:
Sales on account were $492 and cash sales were $1,990.
Cash purchases of inventory totaled $180 and credit purchases of inventory totaled $1,200.
Bad Debt Expense for the year is $2.
All operating expenses besides Bad Debt Expense were paid in cash totaling $850.
Taxable Income for 2020 was $250 and the applicable tax rate is 35%.
REQUIRED: Based on the above data, fill in the blanks to complete the following income statements both on an accrual basis and on a cash basis. You do not need to put any numbers in parentheses as the setup is very clear already.
Cash Basis
Accruals Basis
Sales Revenue
- Cost of Goods Sold
- Operating Expenses
- Income Tax Expense
= Net Income
xxx
xxx
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