11 LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 Gross sales 2020 $20,600 2019 $16,200 5 ts Net sales Sales returns and allowances 800 100 $19,800 $16,100 Cost of merchandise (goods) sold 11,600 8,600 Research Gross profit Operating expenses: Depreciation Selling and administrative Miscellaneous Total operating expenses Interest expense $ 8,200 $ 7,500 $ 860 $ 680 3,400 2,800 710 580 520 380 $ 5,490 $ 4,440 Income before interest and taxes $ 2,710 720 $ 3,060 580 Income before taxes Provision for taxes. $ 1,990 796 $ 2,480 992 Net income $ 1,194 $ 1,488 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land 2020 2019 $ 12,800 $ 9,800 17,300 13,300 9,300 14,800 24,800 10,800 $ 64,200 $ 48,700 $ 15,300 $ 11,800 14,300 9,800 $ 29,600 $ 21,600 $ 93,800 $ 70,300 Total plant and equipment Total assets Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable Total liabilities Common stock Stockholders' Equity Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 13,800 $ 7,800 7,800 5,800 $ 21,600 $ 13,600 22,700 21,400 $ 44,300 $ 35,000 $ 21,800 $ 21,800 27,700 $ 49,500 13,500 $35,300 $ 93,800 $ 70,300