1.

Given the following information, prepare, in good form, an income statement for Goodman
Software, Inc.

Selling and administrative expense ........................................ $ 50,000

Depreciation expense ............................................................. 80,000
Sales ....................................................................................... 400,000
Interest expense ...................................................................... 30,000
Cost of goods sold .................................................................. 150,000
Taxes ...................................................................................... 18,550
2. Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all
the way to computing earnings per share.

Sales ....................................................................................... $600,000

Shares outstanding ................................................................. 100,000
Cost of goods sold .................................................................. 200,000
Interest expense ...................................................................... 30,000
Selling and administrative expense ........................................ 40,000
Depreciation expense ............................................................. 20,000
Preferred stock dividends ....................................................... 80,000
Taxes ...................................................................................... 100,000

3. Arrange the following items in proper balance sheet presentation:

Accumulated depreciation............................. ........................ $200,000

Retained earnings.................................... ............................... 110,000
Cash........................................................................................ 5,000
Bonds payable........................................ ................................ 142,000
Accounts receivable.................................. ............................. 38,000
Plant and equipment—original cost.................... ................... 720,000
Accounts payable..................................... .............................. 35,000
Allowance for bad debts.............................. .......................... 6,000
Common stock, $1 par, 150,000 shares outstanding..... ........ 150,000
Inventory............................................ .................................... 66,000
Preferred stock, $50 par, 1,000 shares outstanding... ............ 50,000
Marketable securities................................ ............................. 15,000
Investments.......................................... .................................. 20,000
Notes payable........................................ ................................. 83,000
Capital paid in excess of par (common stock)......... .............. 88,000