Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available:

Cash $25,400

Receivables from customers (all considered collectible) 11,800

Inventory of merchandise (based on physical count and prices at cost) 81,000 Equipment owned, at cost less used portion

41,600

Accts Payable owed to suppliers 47640

Salary Payable ( on Dec 31, this was owed to an employee who will be paid on Jan 10) 3,600

Total Sales Revenue 118,000

Expenses, including the cost of the merchandise sold (excluding income taxes)

89,200

Income taxes expense at 30% x pretax income; all paid during the current year ?

Common Stock (Dec 31) 98,700

Dividends declared and paid during the current year 10,300

(Note: The beginning balances in Common stock and retained earnings are zero because it is the first year of operations)

Required: 1. Prepare a summarized income statement for the year. HIGHLIGHT CONSTRUCTION COMPANY Income Statement For the Year Ended December 31, Current Year