ABC COMPANY INCOME STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2018 Sales Cost of goods sold Gross profit EXPENSES Advertising Depreciation Bad debts Legal Miscellaneous Rent Repairs and maintenance 2018 2017 2016 $1,572,134 $1,413,581 $1,158,417 $601,215 556,721 500,702 $970,919 $856,860 $657,715 $555,153 $50,531 $42,150 21,442 21,442 21,442 20,151 18,934 17,943 17,261 10,207 9,701 91,014 31,214 29,104 148,321 142,078 141,143 14,315 13,642 11,932 Salaries and wages 47,121 45,312 39,142 Utilities 15,912 15,643 14,217 Total expenses $430,690 $349,003 $326,774 Net income before income tax $540,229 $507,857 $330,941 Income tax expense 216,092 203,143 132,376 NET INCOME $324,137 $304,714 $198,565 Number of shares of stock outstanding 35,913 26,786 23,712 ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 ASSETS Current assets Cash Accounts receivable Inventory Prepaid expenses 2018 2017 2016 $501,992 $434,215 $375,141 335,272 302,514 241,764 515,174 505,321 310,885 251,874 231,100 136,388 Total current assets $1,604,312 $1,473,150 $1,064,178 Property, plant, and equipment 765,215 735,531 705,132 Accumulated depreciation (218,284) (196,842) (175,400) TOTAL ASSETS $2,151,243 $2,011,839 $1,593,910 LIABILITIES Current liabilities Accounts payable $248,494 $366,864 $322,156 Accrued liabilities 122,192 216,533 215,474 Income taxes payable 10,645 25,698 22,349 Current portion of long-term debt 42,200 42,200 42,200 Total current liabilities $423,531 $651,295 $602,179 Long-term liabilities Long-term debt TOTAL LIABILITIES STOCKHOLDERS EQUITY Common stock 425,311 400,311 375,100 $848,842 $1,051,606 $977,279 $370,124 $356,758 $320,841 Additional paid-in capital 29,546 24,881 21,910 Retained earnings 902,731 578,594 273,880 Total stockholders' equity $1,302,401 $960,233 $616,631 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $2,151,243 $2,011,839 $1,593,910 ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 ASSETS % TOTAL 2018 ASSETS % TOTAL 2017 ASSETS 2016 Current assets Cash $501,992 $434,215 $375,141 Accounts receivable 335,272 302,514 241,764 Inventory 515,174 505,321 310,885 Prepaid expenses 251,874 231,100 136,388 Total current assets $1,604,312 $1,473,150 $1,064,178 Property, plant, and equipment 765,215 735,531 705,132 Accumulated depreciation (218,284) (196,842) (175,400) TOTAL ASSETS $2,151,243 $2,011,839 $1,593,910 LIABILITIES Current liabilities Accounts payable $248,494 $366,864 Accrued liabilities 122,192 216,533 Income taxes payable 10,645 25,698 Current portion of long-term debt 42,200 42,200 Total current liabilities $423,531 $651,295 ||||| $322,156 215,474 22,349 42,200 $602,179 Long-term liabilities Long-term debt 425,311 400,311 TOTAL LIABILITIES $848,842 $1,051,606 375,100 $977,279 STOCKHOLDERS' EQUITY Common stock $370,124 $356,758 $320,841 Additional paid-in capital 29,546 24,881 21,910 Retained earnings 902,731 578,594 273,880 Total stockholders' equity $1,302,401 $960,233 $616,631 TOTAL LIABILITIES AND STOCK- $2,151,243 $2,011,839 $1,593,910 HOLDERS EQUITY % TOTAL ASSETS