123,200 49,000 Inventory 112,500 57,900
Brown Company, had the following statements prepared as of December 31, 2020.
|
Brown Company |
|
|||
|
|
12/31/20 |
12/31/19 |
|
|
|
Cash |
$160,800 |
$38,400 |
||
|
|
123,200 |
49,000 |
||
|
Inventory |
112,500 |
57,900 |
||
|
investments (available-for-sale) |
90,000 |
101,000 |
||
|
factory assets |
240,000 |
212,500 |
||
|
Total assets |
$726,500 |
$458,800 |
||
|
Accounts payable |
$100,000 |
$65,200 |
||
|
mortgage debt |
50,000 |
77,000 |
||
|
|
30,000 |
52,000 |
||
|
Common stock |
175,000 |
131,100 |
||
|
|
371,500 |
133,500 |
||
|
Total liabilities and |
$726,500 |
$458,800 |
|
Brown Company |
||||
|
Sales revenue |
|
$440,000 |
|
|
|
Interest and other income (Including gain on sale of investment $5,000) |
|
20,000 |
|
460,000 |
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Less: |
|
|
|
|
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Cost of goods sold |
|
130,000 |
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Selling and administrative expenses |
|
10,000 |
||
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Depreciation |
|
42,000 |
||
|
income tax |
|
5,000 |
||
|
Interest expense |
$3,000 |
|
||
|
Less on sale of factory assets |
12,000 |
202,000 |
||
|
Net profit |
|
258,000 |
||
|
Cash dividend |
|
20,000 |
||
|
retained earnings in business |
|
238,000 |
||
|
|
Additional information:
New factory assets valued at $85,000 in principal were purchased during the year. $20,000 worth of common stock was issued in exchange for the Factory assets. Investments have been sold in the current year. No unrealized gains or losses have arisen from these securities.
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