ABC Corporation published the following information in its financial statements for its 2020 annual report: ABC Corporation Income Statement For the Year ended Dec. 31, 2020 Sales Cost of goods sold Gross profit Cash operating expenses Depreciation Total operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Income tax expense Net income ABC Corporation 80,000 50,000 30,000 9,000 3,000 12,000 18,000 720 17,280 5,356.8 11,923.2 Balance Sheet Dec. 31, 2020 Cash 9,000 Short-term Investments 5,000 Accounts receivable 12,000 Inventory 10,000 Fixed assets, net 24,000 60,000 8,000 3,000 12,000 22,000 15,000 60,000 Total assets Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings Total liabilities & equity Additional Information 1. Sales in 2021 are estimated to be $104,000. 2. Cost of goods sold are considered to be variable costs. 3. $5,000 of the cash operating expenses for 2020 are considered variable costs, and the remainder are fixed costs. 4. Depreciation is, of course, considered to be a fixed cost. 5. Cash, accounts receivable, inventories, accounts payable, and accrued payables are considered to be spontaneous items. 6. Short-term investments, net fixed assets, bonds payable, and common stock are discretionary. 7. $5,000 of bonds payable at the end of 2020 are considered "current liabilities," and will be repaid on January 1, 2021. The interest rate on the bonds for 2021 will remain the same as it was in 2020. 8 Dashboard Calendar To Do Notifications Inbox