MAYNARD COMPANY

BALANCE SHEETS AS OF JUNE 1 AND JUNE 30

Assets

Current Assets:
As of June I
As of June 30:
Cash...................................................................................................................................................................................
$ 34,983
$ 66,660
Accounts receivable...........................................................................................................................................................
21,798
26,505
Note receivable..................................................................................................................................................................
11,700
0
Merchandise inventory.......................................................................................................................................................
29,835
26,520
Supplies on hand................................................................................................................................................................
5,559
6,630
Prepaid insurance...............................................................................................................................................................
3,150
2,826
Total current assets
$107,025
$129,141
Noncurrent assets:
Land...................................................................................................................................................................................
89,700
89,700
Building.............................................................................................................................................................................
585,000
585,000
Less: Accumulated depreciation....................................................................................................................................
(156,000)
429,000 ( 157,950)
427,050
Equipment..........................................................................................................................................................................
13,260
36,660
Less: Accumulated depreciation....................................................................................................................................
( 5,304)
7,956 ( 5,928)
30,732
Other noncurrent assets......................................................................................................................................................
4,857
5,265
Total noncurrent assets..................................................................................................................................................
531,513
552,747

Total assets.......................................................................................................................................................
$638,538
$681,888
Liabilities and Shareholders Equity

Current liabilities:
Accounts payable...............................................................................................................................................................
$8,517
$ 21,315
Bank notes payable............................................................................................................................................................
8,385
29,250
Taxes payable.....................................................................................................................................................................
5,700
7,224
Accrued wages payable......................................................................................................................................................
1,974
2,202
Total current liabilities..................................................................................................................................................
$ 24,576
$ 59,991
Other noncurrent liabilities.................................................................................................................................................
2,451
2,451
Total liabilities..............................................................................................................................................................
27,027
62,442
Shareholders Equity:
Capital stock.......................................................................................................................................................................
390,000
390,000
Retained earnings...............................................................................................................................................................
221,511
229,446
Total shareholders equity.............................................................................................................................................
611,511
619,446
Total liabilities and shareholders equity..................................................................................................................
$638,538
$681,888
Exhibit 1
Cash Receipts and Disbursements
Month of June
Cash Receipts
Cash Sales
Credit customers
Diane Maynard
Bank Loan
Total Receipts

$44420
21798
11700
20865
98783

Cash Disbursements
Equipment purchased
Other assets purchased

$23400
408

Payments on accounts payable

Cash purchase of merchandise
Cash purchase of supplies
Dividends
Wages paid
Utilities paid
Miscellaneous payments
Total disbursements

8517
14715
1671
11700
5660
900
135
67106

Reconciliation:
Cash balance, June 1
Receipts
Subtotal
Disbursements
Cash balance, June 30

$34983
98783
133766
67106
$66660

INCOME STATEMENT . I just dont know where should I get the other values or I have
entered the correct values which are marked in red. I tried many times but I cannot come
up with net income of 19635.

Sales ($44,420 cash sales + $26,505 credit sales).............................................................................................................................

$70,925
Less: Cost of sales *....................................................................................................................................................................
Gross Margin......................................................................................................................................................................................
Expenses
Wages..........................................................................................................................................................................................
5660
Utilities........................................................................................................................................................................................
900
Supplies.......................................................................................................................................................................................
1671
Insurance)....................................................................................................................................................................................
2826
Depreciation)...............................................................................................................................................................................
5928
Miscellaneous..............................................................................................................................................................................
135
Income before income tax..................................................................................................................................................................
Income tax expense......................................................................................................................................................................
7224
Net Income.........................................................................................................................................................................................
19,635
Less: Dividends...........................................................................................................................................................................
11700
Increase in retained earnings..............................................................................................................................................................
7935

*Cost of sales:
Merchandise purchased for cash.................................................................................................................................................
$14,715
Merchandise purchased on credit................................................................................................................................................
Inventory, June 1.........................................................................................................................................................................
29835
Total goods available during June.........................................................................................................................................
Inventory, June 30.......................................................................................................................................................................
26520
Cost of Sales..........................................................................................................................................................................