Answer:
Robin Sporting Goods Company
1. Single-step Income Statement for the year ended July 31, 2018:
Net revenues ................. $191,000
Cost of goods sold................. 136,800
All other expenses......... 29,000 165,800
Net Income $25,200
2. Statement of retained earnings for the year ended July 31, 2018:
Retained earnings, July 31, 2017 ............ $31,500
Net Income $25,200
Dividends.............................. 0
Retained earnings, July 31, 2018 $56,700
3. Report Format Classified Balance Sheet as of July 31, 2018:
Assets
Current assets:
Cash...................................... $50,000
Accounts receivable....... 34,000
Inventories ............................ 36,000
Other current assets ...... 5,000 $125,000
Long-term assets:
Other assets................... 30,000
Property and equipment, net ... 19,400 $49,400
Total assets $174,400
Liabilities + Equity
Total current liabilities........... $80,000
Long-term liabilities.............. 11,700
Total liabilities $91,700
Common stock...................... $26,000
Retained Earnings, July 31, 2018 56,700 $82,700
Total liabilities + Equity $174,400
Explanation:
a) Data and Calculations:
Trial Balance as of July 31, 2018:
Accounts Titles Debit Credit
Cash...................................... $50,000
Accounts receivable....... 34,000
Inventories ............................ 36,000
Other current assets ...... 5,000
Other assets................... 30,000
Property and equipment, net ... 19,400
Total current liabilities........... $ 80,000
Long-term liabilities.............. 11,700
Common stock...................... 26,000
Retained earnings, July 31, 2017 ............ 31,500
Net revenues ................. 191,000
Cost of goods sold................. 136,800
Dividends.............................. 0
All other expenses......... 29,000
Totals $340,200 $340,200
b) Linkages to the three statements:
Income statement is linked to the Statement of Retained Earnings by the Net Income. The Statement of Retained Earnings is linked to the Balance Sheet by the Retained Earnings of July 31, 2018. There is no ability to draw arrows here.
