Chapter 14, Problem 14.4AP

Financial information for Messersmith Company is presented below and on page 645.

MESSERSMITH COMPANY

Balance Sheets

December 31

Assets	2017		2016
Cash	$ 70,000		$ 65,000
Short-term investments	52,000		40,000
Accounts receivable (net)	98,000		80,000
Inventory	125,000		135,000
Prepaid expenses	29,000		23,000
Land	130,000		130,000
Building and equipment (net)	180,000		175,000
	$684,000		$648,000
Liabilities and Stockholders’ Equity
Notes payable		$100,000	$100,000
Accounts payable		48,000	42,000
Accrued liabilities		50,000	40,000
Bonds payable, due 2020		150,000	150,000
Common stock, $10 par		200,000	200,000
Retained earnings		136,000	116,000
		$684,000	$648,000