Folklore Corp.

Trial Balance

December 31, 20x2

Dr. Cr.

Cash 975,000

Accounts receivable (net) 2,695,000

Inventory 2,085,000

Property, plant, and equipment (net) 7,366,000

Accounts payable and accrued liabilities 1,801,000

Income taxes payable 654,000

Deferred income tax liability 85,000

Common stock 2,350,000

Additional paid-in capital 3,680,000

Retained earnings, 1/1/12 3,450,000

Net sales and other revenues 13,460,000

Costs and expenses 11,180,000

Income tax expenses 1,179,000____________

25,480,000 25,480,000

Other financial data for the year ended December 31, 20x2:

Included in accounts receivable is 1,200,000 due from a customer and payable in quarterly

installments of 150,000. The last payment is due December 29, 20x4.

The balance in the Deferred Income Tax Liability account pertains to a temporary difference

that arose in a prior year, of which 20,000 is classified as a current liability.

During the year, estimated tax payments of 525,000 were charged to income tax expense.

The current and future tax rate on all types of income is 30%.

In Folklore's December 31, 20x2 balance sheet,

8. The current assets total is

a. 6,280,000.b. 5,755,000.c. 5,605,000.d. 5,155,000.

9. The current liabilities total is

a. 1,950,000.b. 2,015,000.c. 2,475,000.d. 2,540,000.

10. The final retained earnings balance is

a. 4,551,000.b. 4,636,000.c. 5,076,000.d. 5,005,000.