Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp for December 31, 20X4 and 20X3

Lincoln Corp. - Income Statement as of December 31st, 20X4

Revenue $5,000

Cost of Goods Sold $3,200

Gross Profit $1,800

Operating expenses $1,350

Operating Profit $ 450

Loss on sale of equipment $20

Income tax expense $180

Profit for 2012 $250

Lincoln Corp. - Balance Sheet - December 31

20X420X3Assets:Cash$2,350$1,800Accounts Receivable4501,000Inventory800700Prepaid expenses4080Equipment2,5001,500Accumulated Depreciation(1,350)(1,000)Total Assets$4,790$4,080Liabilities & Shareholders' EquityAccounts Payable$680$350Operating expenses payable210100Income Taxes Payable1200Dividends Payable50100Long term notes Payable30070Common Shares2,5002,500Retained Earnings930960Total Liabilities & Shareholders' Equity$4,790$4,790

Additional Information for Lincoln Corp:

Operating expenses for 20X4 included depreciation for $500

Accounts payable relate exclusively to the purchase of inventory

Machine with a historical cost of $200 was sold at a loss of $20

A new machine was purchased during the year for $1,200

Dividends were declared

Long term notes payable were issued

The total amount of Cash Receipts from Customers when using the direct method is:

$5,550

$5,000

None of the other alternatives are correct

$4,450

More than $5,600