Draper Consulting Inc.
Income Statement
Year Ended December 31, 2019
Sales Revenue		925,000
Less: Cost of Goods Sold		490,000
Gross Profit		435,000
Expenses:
Wages Expense	207,000
Depreciation Expense	62,000
Insurance Expense	17,000
Interest Expense	12,000
Income Tax Expense	57,000
Total Expense		355,000
Other Income and (Expenses):
Gain on Sale of Equipment		16,000
Net Income		96,000

Draper Consulting Inc.
Balance Sheet
December 31, 2019 and 2018
	2019	2018
Assets:
Current Assets:
Cash	25,000	33,000
Accounts Receivable	68,000	51,000
Inventory	177,000	126,000
Prepaid Insurance	8,000	11,000
Total Current Assets	278,000	221,000
Plant Assets:
Equipment	887,000	763,000
Less: Accumulated Depreciation Equipment	(191,000)	(175,000)
Total Assets	974,000	809,000
Liabilities:
Current Liabilities:
Accounts Payable	37,000	27,000
Interest Payable	7,000	0
Income Tax Payable	11,000	19,000
Total Current Liabilities	55,000	46,000
Long-Term Liabilities:
Bonds Payable	145,000	80,000
Total Liabilities	200,000	126,000
Stockholders' Equity:
Common Stock	660,000	585,000
Retained Earnings	166,000	98,000
Less: Treasury Stock	(52,000)	0
Total Stockholders' Equity	774,000	683,000
Total Liabilities and Stockholders' Equity	974,000	809,000

Requirement 2 Based on the financial statements provided and assuming the market price of Drapers stock is $200 per share and there are 100 shares of common stock outstanding,