Question
Condensed financial data of McKillop Corporation appear below: MCKILLOP CORPORATION Comparative Statements of Financial Position December 31 Assets 2022 2021 Cash ........................................................................................... $ 74,700 $
Condensed financial data of McKillop Corporation appear below:
MCKILLOP CORPORATION
Comparative Statements of Financial Position December 31
Assets
|
| 2022 | 2021 |
| Cash ........................................................................................... | $ 74,700 | $ 35,000 |
| Accounts receivable .................................................................... | 104,000 | 67,000 |
| Inventory ..................................................................................... | 100,000 | 112,000 |
| Prepaid expenses ....................................................................... | 32,000 | 36,000 |
| Long-term investments................................................................ | 81,000 | 66,000 |
| Property, plant, and equipment ................................................... | 235,000 | 175,000 |
| Accumulated depreciation ........................................................... | (65,000) | (60,000) |
| Total..................................................................................... | $561,700 | $431,000 |
Liabilities and Shareholders' Equity
| Accounts payable........................................................................ $ 101,000 | $ 75,000 |
| Salaries payable ......................................................................... 21,000 | 24,000 |
| Bank Loan Payable (long-term) 135,000 | 160,000 |
| Common shares 240,000 | 91,000 |
| Retained earnings 64,700 | 81,000 |
| Total $561,700 | $431,000 |
MCKILLOP CORPORATION
Statement of Income
Year Ended December 31, 2022
| Sales........................................................................................... |
| $500,000 |
| Expenses |
|
|
| Cost of goods sold ............................................................... | $295,000 |
|
| Operating expenses ............................................................. | 65,000 |
|
| Depreciation expense .......................................................... | 17,000 |
|
| Interest expense................................................................... | 18,000 |
|
| Loss on sale of equipment ................................................... | 3,000 | 398,000 |
| Income before income tax ........................................................... |
| 102,000 |
| Income tax expense .................................................................... |
| 15,300 |
| Net income.................................................................................. |
| $ 86,700 |
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