6 Taylor Technologies is a small manufacturer of ultrasound equipment. The Year l financial 7 statements for the firm are shown below: 9 Balance Sheet as of December 31, Year 1 (thousands of dollars) 10 Cash $90,000 $180,000 Accounts payable 11 Receivables $180,000 Notes payable $78,000 S360.000 Accruals s90.000 12 Inventories 13 Total current assets $630,000 Total current liabilities $348,000 14 $900,000 15 Net fixed assets $720,000 Common stock. 102,000 16 Retained earnings Total liabil & equity 17 Total assets $1.350,000 $1.350,000 18 19 Income Statement for Year i (thousands of dollars) 20 sales $1,800,000 21 Operating costs 639,860 22 Earnings before interest and taxes $160,140 sio 23 Interest 24 Earnings before taxes $150,000 25 Taxes (40%) S60.000 26 Net income $900,000 27 Dividends (60%) $54,000 28 Addition to retained earnings $30,000 29 6 Taylor Technologies is a small manufacturer of ultrasound equipment. The Year l financial 7 statements for the firm are shown below: 9 Balance Sheet as of December 31, Year 1 (thousands of dollars) 10 Cash $90,000 $180,000 Accounts payable 11 Receivables $180,000 Notes payable $78,000 S360.000 Accruals s90.000 12 Inventories 13 Total current assets $630,000 Total current liabilities $348,000 14 $900,000 15 Net fixed assets $720,000 Common stock. 102,000 16 Retained earnings Total liabil & equity 17 Total assets $1.350,000 $1.350,000 18 19 Income Statement for Year i (thousands of dollars) 20 sales $1,800,000 21 Operating costs 639,860 22 Earnings before interest and taxes $160,140 sio 23 Interest 24 Earnings before taxes $150,000 25 Taxes (40%) S60.000 26 Net income $900,000 27 Dividends (60%) $54,000 28 Addition to retained earnings $30,000 29