13 Use the information on the next 2 pages questions to answer 45 50 Presented below are the balance sheets of David January 1 and December 31 Price Corporation as of of the current year. Balance Sheets January 1 and December 31 January December 31 Assets $25,000 $5,000 Cash 7,500 50,000 Accounts Receivable, net 37,500 85,000 Inventories 42,000 Buildings and Equipment U2.600) Less: Accumulated Depreciation $189,400 Total Assets Liabilities and Stockholders' Equ $48,400 Accounts Payable 36,000 Bonds Payable 10,000 Common Stock, par value $10 55,000 15,000 Additional Paid in Capital 98,600 80,000 Retained Earnings Total Liabilities and Stockholders' Equity $139,400 -2 Presented below is the income statement of David Price Corporation for the year ended December 31 of the current year Income Statement For the Year Ended December 31 $250,000 Net Sales Revenue Less: Cost of Goods Sold 150,000 Gross Margin $100,000 Less: Selling and Administrative Expense 75,000 Primary Operating Income $25,000 Other Income (Expense): Gain on Sale of Equipment 13,700 Interest Expense 1,033 12,667 Pre-Tax Income from Continuing Operations $37,667 Income Tax Expense ($37,667 x 40% 15,067 Net Income $22,600