12 Edman Company Balance Sheets D 3 Balanced Sheet: Beginning Balance Ending Balance Average Balance 4 Assets 5 Cash $ 150,000 $ S 75,000 6 Accounts receivable $ 180,000 7 Inventory $ 240,000 8 Property, plant & equipment (net) $ 793,000 9 Other assets $ 37,000 10 Total assets $ 1,400,000 $ 75,000 11 12 Liabilities & stockholders' equity 13 Accounts payable 14 Bonds payable 15 Common stock 16 Retained earnings 55 $ 80,000 $ 550,000 $ 410,000 360,000 17 Total liabilities & stocholders' equity 1,400,000 $ 18 Edman Company Income Statement 19 20 21 Sales 2222 22 Variable expenses: 23 Cost of goods sold 24 Variable selling expense 25 Total variable expenses 26 Contribution margin 27 Fixed expenses 28 Fixed selling expense 220,000 29 Fixed administrative expense 300,000 30 Total fixed expenses 520,000 31 Net operating income (520,000) 32 Interest expense (8%) 33 Net income before tax (520,000) 34 Tax expense (30%) (156,000) 35 Net income (364,000) 36