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2. Shull Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year I (in thousands
2. Shull Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year I (in thousands of dollars) Year 2 Year Current assets: S 180 S 150 Accounts receivable 200190 140 140 140 190 100 Inventory. Prepaid expenses Total current assets.. Plant and equipment, nct. 620 570 180-800 1.400 $1370 Total assets Current liabilities: Accounts payable. Accrued liabilitics. S 110 130 80 70 Notes payable, short term.. Total current liaiies Bonds payablc.. 250 260 220 240 Total liabilities -470-500 . Stockholders' equity: Preferred stock, $100 par value, 594 Common stock, $2 par value Additional paid-in capital-common stock... Retained earnings 200 200 400 200 400 400 Total stockholders' equity. Total liabilities & stockholders' equity 100 100 230 170 930870 equity.. 1.400 $1.370 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account). Cost of goods sold... Gross margin. Selling and administrative expense.. Net operating income. Interest expense.... $1,130 430 186 Income taxes (30%) Dividends on common stock during Year 2 totaled S40 thousand. Dividends on preferred stock totaled S10 thousand. The market price of common stock at the end of Year 2 was $9.80 per share
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