Cooley Company Reports the Following Accounts and Balances at December

question 150

Essay

Cooley Company reports the following accounts and balances at December 31,2015:
$$\begin{array} { l l } \text { Accounts Payable } & \$ 22,800 \\\text { Accounts Receivable } & 18,800 \\\text { Cash } & 24,400 \\\text { Land } & 82,400 \\\text { Machine } & 129,200 \\\text { Merchandise Inventory } & 63,600 \\\text { Long-term Note Payable } & 79,200 \\\text { Short-teran Note Payable } & 14,400 \\\text { Paid-in Capital } & 200,000 \\\text { Retained Earnings } & ? \\\text { Sales Revenue } & 122,000 \\\text { Cost of Goods Sold } & 80,000 \\\text { Operating Expenses } & 40,000\end{array}$$
Required:
Prepare a balance sheet at December 31,2015.Also,prepare an income statement for the year ended December 31,2015.Ignore depreciation expense and interest expense.

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Definitions:

Divide Labour

The process of breaking down work into distinct tasks that are distributed among different workers or groups, aiming to increase efficiency and productivity.

Coordinate Labour

The organization and alignment of worker efforts and tasks to ensure efficient and effective achievement of collective goals.

Achieve Goals

The process of setting targets and successfully reaching them through planning and effort.

Top Executives

Individuals who hold the highest management positions in an organization, responsible for overall strategic decisions.