12-7

Kimmel, Financial Accounting, 8e Problem 12-7A (Part Level Submission) Presented below are the financial statements of Skysong Company. Skysong Company Comparative Balance Sheets December 31 Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 72.450$41,400 41,400 28.980 57,960 41,400 124.200 161,460 (66,240) (49,680) $229,770$223,560 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 39,330 31,050 16,560 68,310 37,260 28,980 78,660 229,770 $223,560 14.490 35,190 103,500 ear Ended December 31, 20 Cost of goods sold 362,250 Gross prof 138,690 Selling expenses Administrative expenses Income from operations Interest expense income before income taxes Income tax expense $37,260 12,420 49,680 89,010 6210 82,800 16,560 66,240 Net income Additional data: 1. Depreciation expense was $36,225. 2. Dividends decdlared and paid were $41,400. 3. During the year equigment was sold for $17,595 cash. This equipment cost s37,260 originaly and had accumulated depreciation of $19,665 at the time s erg