Financial statements for Discovery Company follow: DISCOVERY COMPANY Statement of Financial Position As of 31 December Assets Current assets: 20X4 20X3 Cash Accounts receivable 1,030,000 840,000 $ 37,000 32,000 980,000 761,600 Total current assets 1,773,600 300,000 3,520,000 2,418,000 (1,781,600) (1,756,000) 194,000 1,907,000 700,000 Land Plant and equipment Less: Accumulated depreciation Patents 186,000 Total assets $4,531,400 $ 2,929,600 Liabilities and shareholders' equity Liabilities: Current liabilities: Accounts payable Salaries and wages payabl Income tax payable $ 580,000 S 632,400 84,200 198,600 91,400 213,800 Total current liabilities 915,200 2,218,000 190,000 885,200 Long-term debt Total liabilities 3,103,200 2,105,200 Shareholders' equity: Common shares, no-par Retained earnings 366,000 360,000 464,400 1,062,200 1,428,200 Total liabilities and shareholders'equity $4,531,400 Total shareholders' equity 824,400 2,929,600 Financial statements for Discovery Company follow: DISCOVERY COMPANY Statement of Financial Position As of 31 December Assets Current assets: 20X4 20X3 Cash Accounts receivable 1,030,000 840,000 $ 37,000 32,000 980,000 761,600 Total current assets 1,773,600 300,000 3,520,000 2,418,000 (1,781,600) (1,756,000) 194,000 1,907,000 700,000 Land Plant and equipment Less: Accumulated depreciation Patents 186,000 Total assets $4,531,400 $ 2,929,600 Liabilities and shareholders' equity Liabilities: Current liabilities: Accounts payable Salaries and wages payabl Income tax payable $ 580,000 S 632,400 84,200 198,600 91,400 213,800 Total current liabilities 915,200 2,218,000 190,000 885,200 Long-term debt Total liabilities 3,103,200 2,105,200 Shareholders' equity: Common shares, no-par Retained earnings 366,000 360,000 464,400 1,062,200 1,428,200 Total liabilities and shareholders'equity $4,531,400 Total shareholders' equity 824,400 2,929,600