Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $284,620 $266,290 Accounts receivable (net) 103,110 95,640 Inventories 291,060 283,160 Investments 0 109,700 Land 149,290 0 Equipment 321,130 250,350 Accumulated depreciation-equipment (75,180) (67,510) Total assets $1,074,030 $937,630 Liabilities and Stockholders' Equity Accounts payable $194,400 $184,710 Accrued expenses payable 19,330 24,380 Dividends payable 10,740 8,440 Common stock, $10 par 58,000 45,940 Excess of paid-in capital over par 218,030 127,520 Retained earnings 573,530 546,640 Total liabilities and stockholders’ equity $1,074,030 $937,630 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,565,390 Cost of merchandise sold 644,600 Gross profit $920,790 Operating expenses: Depreciation $7,670 Other operating expenses 812,930 Total operating expenses 820,600 Operating income $100,190 Other expense: Loss on sale of investments (29,620) Income before income tax $70,570 Income tax expense 22,580 Net income $47,990 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $80,080 cash. The common stock was issued for cash.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:

	Dec. 31, 20Y6	Dec. 31, 20Y5
Assets
Cash	$284,620		$266,290
Accounts receivable (net)	103,110		95,640
Inventories	291,060		283,160
Investments	0		109,700
Land	149,290		0
Equipment	321,130		250,350
Accumulated depreciation-equipment	(75,180)		(67,510)
	Total assets	$1,074,030		$937,630

Liabilities and Stockholders' Equity
Accounts payable	$194,400		$184,710
Accrued expenses payable	19,330		24,380
Dividends payable	10,740		8,440
Common stock, $10 par	58,000		45,940
Excess of paid-in capital over par	218,030		127,520
Retained earnings	573,530		546,640
	Total liabilities and stockholders’ equity	$1,074,030		$937,630

The income statement for the year ended December 31, 20Y6, is as follows: