E-PERFORM, INC. Statement of Financial Position December 31 Assets 2012 2011 Cash $95,600 $48,660 Trading investments 129,550 116,800 Accounts receivable 74,420 44,690 Inventories 122,080 92,440 Prepaid expenses 18,620 26,740 Property, plant, and equipment 268,450 242,890 Accumulated depreciation 51,570) (53,300) $657,150 $518,920 Total assets Liabilities and Shareholders' Equity Accounts payable $94,400 $79,030 Accrued liabilities 12,030 6,320 Bank loan payable 106,310 154,840 Common shares 198,300 174,600 Retained earnings 246, 110 104,130 $657,150 $518,920 Total liabilities and shareholders' equity E-PERFORM, INC. Income Statement Year Ended December 31, 2012 $491,180 Sales Cost of goods sold 185,830 Gross profit 305,350 operating expenses 116,050 Profit from operations 189,300 Other revenues and expenses Unrealized gain on trading investments $12,750 (4,100) Interest expense 8,650 Profit before income tax 197,950 Income tax expense 45,380 $152,570 Profit Additional information: 1. Prepaid expenses and accrued liabilities relate to operating expenses 2. An unrealized gain on trading investments of $12,750 was recorded. 3. New equipment costing $84,670 was purchased for $25,560 cash and a $59,110 long-term bank loan payable. 4. Old equipment having an original cost of $59,110 was sold for $1,480 5. Accounts payable relate to merchandise creditors. 6. Some of the bank loan was repaid during the year. 7. A dividend was paid during the year. 8. Operating expenses include $46,360 of depreciation expense and a $9,540 loss on disposal of equipment