ACCT 2302 TD006 (01/16/18-04/13/18) online / Lesson 3/Chapter 14 Practice Homework *Problem 14-4A Financial information for Messersmith Company is presentdti below MESSERSMITH COMPANY Balance Sheets Assets Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Land Building and equipment (net) 2017 $70,000 52,000 98,000 125,000 29,000 130,000 180,000 $684,000 2016 65,000 40,000 80,000 135,000 23,000 130,000 175,000 $648,000 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2020 Common stock, $10 par Retained earnings $100,000 $100,000 42,000 40,000 150,000 200,000 116,000 $684,000 $648,000 48,000 50,000 150,000 200,000 136,000 MESSERSMITH COMPANY Income Statement For the Years Ended December 31 2017 2016 $790,000 575,000 215,000 173,000 $ 42,000 Net sales Cost of goods sold Gross profit Operating expenses Net income $850,000 620,000 230,000 187,000 $43,000 Additional information: 1. Inventory at the beginning of 2016 was $118,000. 2. Total assets at the beginning of 2016 were $630,000. 3. No common stock transactions occurred during 2016 or 2017. 4. All sales were on account. Accounts receivable, net at the beginning of 2016 were $88,000. 5. Notes payable are classified as current liabilities