COMPUTER SERVICES CORPORATION Balance Sheet December 31
Assets	2021	2020	Increase (Decrease)
Current assets
Cash	$55,000	$33,000	$22,000
Accounts receivable	20,000	30,000	(10,000)
Inventory	15,000	10,000	5,000
Prepaid expenses	5,000	1,000	4,000
Property, plant, and equipment
Land	130,000	20,000	110,000
Building	160,000	40,000	120,000
Accumulated depreciationbuilding	(11,000)	(5,000)	6,000
Equipment	27,000	10,000	17,000
Accumulated depreciationequipment	(3,000)	(1,000)	2,000
Total assets	$398,000	$138,000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable	$28,000	$12,000	$16,000
Income tax payable	6,000	8,000	(2,000)
Non-current liabilities
Bonds payable	130,000	20,000	110,000
Shareholders' equity
Common shares	70,000	50,000	20,000
Retained earnings	164,000	48,000	116,000
Total liabilities and shareholders' equity	$398,000	$138,000
Sales revenue			$507,000
Cost of goods sold			150,000
			357,000
Operating expenses		$111,000
Depreciation expense		9,000
Loss on sale of equipment		3,000	123,000
Profit from operations			234,000
Other expenses
Interest expense			42,000
Profit before income tax			192,000
Income tax expense			47,000
Profit			$145,000

ILLUSTRATION 17.7 Computer Services' financial information

Additional information for 2021:

• A $29,000 cash dividend was paid.
• Land was acquired by issuing $110,000 of long-term bonds.
• Equipment costing $25,000 was purchased for cash.
• Equipment with a carrying amount of $7,000 (cost of $8,000, less accumulated depreciation of $1,000) was sold for $4,000 cash.
• Depreciation expense consists of $6,000 for the building and $3,000 for equipment.