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Drill Problem 16-10 [LU 16-3 (2)] LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2014 and 2015 2015 2014 Gross sales $ 19,600
Drill Problem 16-10 [LU 16-3 (2)]
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2014 and 2015 | ||||
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2015 | 2014 | |||
Gross sales | $ | 19,600 | $ | 15,450 |
Sales returns and allowances | 1,000 | 100 | ||
Net sales | $ | 18,600 | $ | 15,350 |
Cost of merchandise (goods) sold | 11,850 | 8,850 | ||
Gross profit | $ | 6,750 | $ | 6,500 |
Operating expenses: | ||||
Depreciation | $ | 760 | $ | 630 |
Selling and administrative | 2,650 | 2,300 | ||
Research | 610 | 530 | ||
Miscellaneous | 420 | 330 | ||
Total operating expenses | $ | 4,440 | $ | 3,790 |
Income before interest and taxes | $ | 2,310 | $ | 2,710 |
Interest expense | 620 | 530 | ||
Income before taxes | $ | 1,690 | $ | 2,180 |
Provision for taxes | 676 | 872 | ||
Net income | $ | 1,014 | $ | 1,308 |
LOGIC COMPANY Comparative Balance Sheet December 31, 2014 and 2015 | ||||
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2015 | 2014 | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 12,300 | $ | 9,300 |
Accounts receivable | 16,800 | 12,800 | ||
Merchandise inventory | 8,800 | 14,300 | ||
Prepaid expenses | 24,300 | 10,300 | ||
Total current assets | $ | 62,200 | $ | 46,700 |
Plant and equipment: | ||||
Building (net) | $ | 14,800 | $ | 11,300 |
Land | 13,800 | 9,300 | ||
Total plant and equipment | $ | 28,600 | $ | 20,600 |
Total assets | $ | 90,800 | $ | 67,300 |
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | $ | 13,300 | $ | 7,500 |
Salaries payable | 7,300 | 5,300 | ||
Total current liabilities | $ | 20,600 | $ | 12,800 |
Long-term liabilities: | ||||
Mortgage note payable | 22,300 | 20,800 | ||
Total liabilities | $ | 42,900 | $ | 33,600 |
Stockholders |
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