ST-I.

INCOME STATEMENT Sales $ 13,000 Cost of goods sold 6.000 Gross profits $ 7,000 Depreciation expense 600 General and administrative expenses ----.!RQQ Operating expenses $ 1,600 Operating income $ 5,400 Interest expense ----.!.dQQ Ea rn ings before taxes $ 4,200 Taxes ----..!.dQQ Net income $ 2.900 BALANCE SHEET Cash $ 11,000 Accounts receivable 10,000 Inventory 5.000 Total current assets $ 26,000 Buildings and equipment 120,000 Accumulated depreciation 38,000 Net buildings and equipment 82,000ı
Total assets $108,000ı
Accounts payable $ 5,000 Short-term notes 750 Current liabilities $ 5,750 Long-term debt $ 42,000 Total debt $ 47,750 Common stock 50,000 Retained earnings 10,250 Total debt and equity $108,000