What Is Polly's Pet Products Income Statement

Polly’s Pet Products
Polly’s Pet Company has provided us with their Balance sheet, Income statement and statement of cash flows. However, there is missing information and blanks in these statements. This paper provides correct balances for the blank financial account lines, defines the financial statement being completed, discusses how the values were determined, defines and explains each account line that was completed, and analyzes, evaluates, and develops conclusions about the company’s performance based on the financial information.
Table 1: Income Statement as of December 31, 2018
Polly's Pet Products
Revenues 650,000
Operating Costs (A)-445,000
Gross Profit 205,000
General and Administrative Expenses -75,000
Operating Income (B)130,000

Total Stockholders equity, the total amount of capital given to shareholders in exchange for stock, is derived from the difference between the total assets and total liabilities ($350,000-$161,500= $188,500).
R. The total Liabilities and Stockholder equity is the sum of the total liabilities and total stockholders equity
($161,500+$188,500 = $350,000)
Conclusion:
Polly’s Pet Products is a successful business as Polly’s Pet Products Assets is equivalent to its total liabilities and stockholder equity, there is a zero balance. This also explains that the above calculations are accurate. The beginning balance and the net income ($103,500+$65,000 = $168,500) and the income statement for Polly’s Pet Products has a retained earnings ending balance of $168,500. Moreover, the company has a positive cash flow because of an end of year cash balance of $200,000 while beginning the year with only 30,000. This business is also a profitable one, shown evidently through the 65,000 net income generated. Considering the financial data provided above, Polly’s Pet Products is a growing business.
References:
Chen, J. (2020, October 11). Income Statement. Retrieved November 17, 2020, from