Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp (Linc) 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 20X4 = $250

Lincoln Corp. - Balance Sheet - December 31

Assets:20X4 20X3

Cash$ 2,350 $1,800

Accounts Receivable450 1,000

Inventory800 700

Prepaid expenses40 80

Equipment2,500 1,500

Accumulated Depreciation(1,350) (1,000)

Total Assets$4,790 $4,080

Liabilities & Shareholders' Equity

Accounts Payable$ 680 $ 350

Operating expenses payable 210 100

Income Taxes Payable1200

Dividends Payable 50 100

Long term notes Payable300 70

Common Shares2,500 2,500

Retained Earnings930 960

Total 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 accounts receivable turnover at December 20X4 was:

Not enough data provided to calculate it

between 0.14 and 0.11

Equal or below 0.10

between 0.18 and 0.15

Equal or above 0.19