2. Problem 13-24 Blake Weaver, Cook Enterprises' controller, is preparing the financial statements for 2013. He as completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: On December 31, 2013, Cook sold a piece of equipment with an original cost of $25,000 for $30,000 cash. The equipment had a book value of $13,000. On February 1, 2013, Cook issued $100,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year. On February 2, 2013, Cook took out a ten-year $75,000 long-term loan to provide the remaining funds needed to purchase the building. * .On May 15, 2013, Cook paid $150,000 for the new building .The company repaid $4,600 of the long-term debt before the end of the year. Cook Enterprises Income Statement For the Year Ended December 31, 2013 Sales revenue Gain on equipment sale 1,070,000 17,000 1,087,000 700,000 Total revenue Cost of goods sold Operating expenses Depreciation expense 30,000 Interest expense Wages expenses Other expenses16,000 7,400 175,000 228,400 158,600 63,400 $95,200 Income before taxes Tax expense Net income Cook Enterprises Comparative Balance Sheets As of December 31, 2013 2013 2012 Cash Accounts receivable, net Inventory $124,200 $40,400 287,200 269,800 125,000 95,000 536,400 405,200 297,000 160,000 90,000 60,000 Net property, plant, &equipment 207,000 100,000 743,400 505,200 $150,000 175,000 17,600 20,000 Total current assets Property, plant, & equipment Accumulated depreciation Total assets Accounts payable Taxes payable Mortgage payable 70,400 Total liabilities Common stock Retained earnings 238,000 195,000 350,000 250,000