Using the operating ratios for Company X, whose income statement appears below, determine the balances for the assets and liabilities driven by its sales revenue and expenses.
|
Sales Revenue |
$5,200,000 |
|
Cost of Goods Sold Expense |
-3,120,000 |
|
Gross Margin |
$2,080,000 |
|
Selling and General Expenses |
-1,430,000 |
|
Depreciation Expense |
-160,000 |
|
Operating Earnings |
$490,000 |
|
Interest Expense |
-97,500 |
|
Earnings Before Income Tax |
$392,500 |
|
Income Tax Expense |
-137,375 |
|
Net Income |
$255,125 |