Accounting Question

Your final submission of the homework assignment must be submitted via Brightspace by the posted due date and time. The Assignment will be locked at the due date/time. Please contact me well ahead of the deadline if you have extenuating circumstances.

Problem 1

Construct an Income Statement for BSK Engineering, for the year ending December 31, 2023, given the following information.

Total Sales was $315 million.

Other Expenses (excluding Depreciation & Amortization) was $29.5 million.

EBITDA was 21.3% of Sales.

Depreciation & Amortization was 13.3% of Gross Fixed Assets.

Interest Expense was 3.7% of Long-Term Debt.

The corporate tax rate for the company is 31.2%.

Net Fixed Assets at the start of 2023 was $274 million. Accumulated Depreciation at the start of 2023 was $115 million. No new fixed assets were acquired during 2023, and none were sold or retired.

Long-Term Debt on December 31, 2022 totaled $295 million. The next principal payment will take place on December 31, 2026. No additional interest-bearing debt was incurred during 2023.

Problem 2

Construct a full Statement of Shareholders’ Equity for Smoky Mountain, as of December 31, 2023, given the following information.

As of December 31, 2022, there were 42 million shares of stock outstanding, sold by the company to shareholders for a total of $90 million.

On March 11, 2023, 6 million shares were repurchased by the company from shareholders for $20 million.

On September 3, 2023 the company sold 8 million new shares at an average price of $4.25 per share.

No other shares were sold or repurchased in 2023.

• Net Income for the year ending December 31, 2023 was $31 million.
• During 2023, $5 million of cash dividends were declared and paid to shareholders.
• As of December 31, 2023, total Shareholders’ Equity was $602 million.

Unit 1 Individual Assignment
Your final submission of the homework assignment must be submitted via
Brightspace by the posted due date and time. The Assignment will be locked
at the due date/time. Please contact me well ahead of the deadline if you
have extenuating circumstances.
You must upload an Excel spreadsheet for your assignment, with formulas
showing all calculations.
Please name your file “Tianjian, Tang Unit 1”.
Please answer the following questions. All numbers should be in thousands
of dollars.
Problem 1
Construct an Income Statement for BSK Engineering, for the year ending
December 31, 2023, given the following information.
• Total Sales was $315 million.
• Other Expenses (excluding Depreciation & Amortization) was
$29.5 million.
• EBITDA was 21.3% of Sales.
• Depreciation & Amortization was 13.3% of Gross Fixed Assets.
• Interest Expense was 3.7% of Long-Term Debt.
• The corporate tax rate for the company is 31.2%.
• Net Fixed Assets at the start of 2023 was $274 million. Accumulated
Depreciation at the start of 2023 was $115 million. No new fixed assets
were acquired during 2023, and none were sold or retired.
• Long-Term Debt on December 31, 2022 totaled $295 million. The next
principal payment will take place on December 31, 2026. No additional
interest-bearing debt was incurred during 2023.
Problem 2
Construct a full Statement of Shareholders’ Equity for Smoky Mountain, as
of December 31, 2023, given the following information.
• As of December 31, 2022, there were 42 million shares of stock
outstanding, sold by the company to shareholders for a total of
$90 million.
• On March 11, 2023, 6 million shares were repurchased by the company
from shareholders for $20 million.
• On September 3, 2023 the company sold 8 million new shares at an
average price of $4.25 per share.
• No other shares were sold or repurchased in 2023.
• Net Income for the year ending December 31, 2023 was $31 million.
• During 2023, $5 million of cash dividends were declared and paid to
shareholders.
• As of December 31, 2023, total Shareholders’ Equity was $602 million.
Good luck!