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Given below are the comparative financial statements of Cornerstone Company. Cornerstone Company Comparative Balance Sheet Particulars This Year Last Year Assets Current Asset Cash 50,000
Given below are the comparative financial statements of Cornerstone Company.
Cornerstone Company Comparative Balance Sheet Particulars This Year Last Year Assets Current Asset Cash 50,000 100,000 Accounts receivable, net 300,000 150,000 Inventory 600,00 400,000 Prepaid expenses 25,000 30,000 Total current assets 975,000 680,000 Property and equipment, net 125,000 150,000 Total assets 1, 100,000 830,000 Liabilities and Stockholder's Equity Current Liabilities Accounts payable 400,000 290,000 Short-term notes payable 200,000 60,000 Total Current Liabilities 600,000 350,000 Long-term bonds payable, 12% 100,000 150,000 Total Liabilities 700,000 500,000 Stockholder's Equity Common Stock (100,000 share 200,000 200,000 Retained earnings 200,000 130,000 Total liabilities and stockholder's equity 1, 100,000 830,000Cornerstone Company Comparative Income Statement This Year Last Year Sales 950,000 900,000 Less: Cost of goods sold 500,000 490,000 Gross margin 450,000 410,000 Less: Selling and 275,000 260,000 administrative expenses Operating income 175,000 150,000 Less: Interest expense 12,000 18,000 Income before income taxes 163,000 132,000 Less: Income taxes 65,200 52,800 Net Income 97,800 79,200 Less: Dividends 27,800 19,200 Net Income, retained 70,000 60,000Step by Step Solution
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