A comparative balance sheet and an income statement for Rowan Company are given below:

Millen Corporation
Balance Sheet
June 30
Assets
Cash	$	120,000
Accounts receivable		166,000
Inventory		37,200
Plant and equipment, net of depreciation		554,800
Total assets	$	878,000
Liabilities and Stockholders’ Equity
Accounts payable	$	93,000
Common stock		586,000
Retained earnings		199,000
Total liabilities and stockholders’ equity	$	878,000

 

Rowan also provided the following information: 1. The company sold equipment that had an original cost of $16 million and accumulated depreciation of $9 million. The cash proceeds from the sale were $11 million. The gain on the sale was $4 million. 2. The company did not issue any new bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not complete any common stock transactions during the year.