A B E 11 Pharoah Company 12 Balance Sheet and Income Statement Data 13 14 12/31/2020 12/31/2019 15 Current Assets: 16 Cash $ 3,000 $ 7,100 17 Accounts Receivable 71,500 51,000 18 Inventory 44,800 63,900 19 Total Current Assets 119,300 122,000 20 21 Property, Plant, and Equipment 22 Less: Accumulated Depreciation 23 Land 155,200 129,900 (35,200) 80,600 (24,800) 67,700 24 Total Assets 25 26 Current Liabilities: 27 Accounts Payable $ 319,900 $ 294,800 45,800 39,800 28 Wages Payable 12,000 9,900 29 Long Term Notes Payable 68,100 78,800 30 Total Liabilities 125,900 128,500 31 32 Stockholders' Equity: 33 Common Stock 34 Retained Earnings 35 Total Stockholders' Equity 130,000 130,000 64,000 36,300 194,000 166,300 36 Total Liabilities & Stockholders' Equity $319,900 $ 294,800 37 38 Sales Revenue 39 Less Cost of Goods Sold 40 Gross Profit $ 348,150 175,700 172,450 41 Operating Expenses 42 Operating Income 43 Interest Expense G H K L M N (119,400) 53,050 (11,300) (500) 41,250 Additional Information: 1)The company sold equipment that had an original cost of $20,200 and a book value of $6,060. 2) There have been no sales of land during the year. 3) Depreciation expense is included in operating expenses. 4) There have been no additional borrowings under the long term note payable. 5) There has been no repurchase of treasury stock. 6) Dividends were declared and paid during 2020 44 Loss on Sale of Equipment 45 Income Before Taxes 46 Less Income Tax Expense 6,750 47 Net Income $ 34,500 48