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Condensed financial data of Needles Corporation appear below: NEEDLES CORPORATION Comparative Statements of Financial Position December 31, 2013 Assets 2013 2012 Cash Accounts receivable
Condensed financial data of Needles Corporation appear below: NEEDLES CORPORATION Comparative Statements of Financial Position December 31, 2013 Assets 2013 2012 Cash Accounts receivable Merchandise inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Total $ 74,700 90,000 $ 35,000 120,000 21,000 53,000 132,000 25,000 90,000 75,000 310,000 250,000 (65,000) (60,000) $640.700 $510.000 Liabilities and Shareholders' Equity Accounts payable $ 93,000 $ 75,000 Accrued expenses payable 29,000 24,000 Bonds payable 135.000 160,000 Common shares Retained earnings Total 240.000 170.000 143,700 81.000 $640.700 $510,000 Sales Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of equipment Profit before income tax Income tax expense Profit NEEDLES CORPORATION Income Statement Year Ended December 31, 2013 $500,000 $295,000 65,000 17,000 18,000 3,000 398,000 102,000 15,300 $ 86.700 Additional information regarding fiscal 2013: 1. New equipment costing $85,000 was purchased for cash. 2. Old equipment costing $25,000 was sold for $10,000 cash when the carrying amount was $13,000. 3. Cash dividends were declared and paid during the year. 4. Accounts payable pertain to merchandise purchases. Using the DIRECT method, Cash Payments to suppliers are $174,600 $265,000 $156,000 $230,000 None of the above
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