Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets SARASOTA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity SARASOTA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $11,600 1,900 $337,300 174,000 163,300 119,100 44,200 $312,400 9,700 34,500 $6,000 6,900 62,500 35,200 40,300 4,900 $312,400 $27,600 153,100 (35,200 ) 45,600 $45,500 4,000 8,000 8,000 59,400 100,000 30,000 57,500 12/31/19 $6,900 50,900 17,900 59,500 4,100 129,600 (24,700 ) 50,500 $294,700 $40,000 6,100 3,900 9,900 68,800 100,000 30,000 36,000 $294,700
Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets SARASOTA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity SARASOTA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $11,600 1,900 $337,300 174,000 163,300 119,100 44,200 $312,400 9,700 34,500 $6,000 6,900 62,500 35,200 40,300 4,900 $312,400 $27,600 153,100 (35,200 ) 45,600 $45,500 4,000 8,000 8,000 59,400 100,000 30,000 57,500 12/31/19 $6,900 50,900 17,900 59,500 4,100 129,600 (24,700 ) 50,500 $294,700 $40,000 6,100 3,900 9,900 68,800 100,000 30,000 36,000 $294,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sarsota Inc, a greeting card company, had the following statements prepared as of December 31
Additional Information:
1. Dividends in the same amount $6,100 were declared and paid during 2020
2. Depreciation expense and amortization expense are included in operating expenses
3. No unrealized gains ro losses have occurred on the investments during the year
4. Equipment that had a cost of $20,000 and was 70%
Transcribed Image Text:Cash
Accounts receivable
Short-term debt investments (available-for-sale)
Inventory
Prepaid rent
Equipment
Accumulated depreciation-equipment
Copyrights
Total assets
Accounts payable
Income taxes payable
Salaries and wages payable
Short-term loans payable
Long-term loans payable
Common stock, $10 par
Contributed capital, common stock
Retained earnings
Total liabilities & stockholders' equity
SARASOTA INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
Cost of goods sold
Gross profit
SARASOTA INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue
$337,300
174,000
Operating expenses
Operating income
Interest expense
Gain on sale of equipment
Income before tax
Income tax expense
Net income
$11,600
1,900
163,300
119,100
$312,400
44,200
$6,000
9,700
62,500
35,200
40,300
34,500
6,900
$27,600
4,900
153,100
(35,200 )
45,600
30,000
57,500
$312,400
$45,500
4,000
8,000
8,000
59,400
100,000
12/31/19
$6,900
50,900
17,900
59,500
4,100
129,600
(24,700 )
50,500
$294,700
$40,000
6,100
3,900
9,900
68,800
100,000
30,000
36,000
$294,700
![SARASOTA INC.
Statement of Cash Flows
$
$
$
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Transcribed Image Text:SARASOTA INC.
Statement of Cash Flows
$
$
$
[]
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