Professional Documents
Culture Documents
11. Stein Books, Inc. sold 1,400 finance textbooks for $195 each to High Tuition University in
2010. These books cost $150 to produce. Stein Books spent $12,000 (selling expense) to
convince the university to buy its books.
Depreciation expense for the year was $15,000. In addition, Stein Books borrowed
$100,000 on January 1, 2010, on which the company paid 10 percent interest. Both the
interest and principal of the loan were paid on December 31, 2010. The publishing
firm’s tax rate is 30 percent.
Did Stein Books make a profit in 2010? Please verify with an income
statement presented in good form.
Solution:
Stein Books, Inc.
Income Statement
For the Year Ending December 31, 2010
Account USD
27. For December 31, 2009, the balance sheet of Baxter Corporation was as follows:
Solution:
Baxter Corporation
Income Statement
As at 31 December 2010
Accounts USD
Baxter Corporation
Statement of Retained Earning
As at 31 December 2010
Accounts USD
Baxter Corporation
Balance Sheet
As at 31 December 2010