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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

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

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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