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Headland Company had avaliable at the end of 2025 the following information. begin{tabular}{|c|c|c|} hline multicolumn{3}{|c|}{begin{tabular}{l} Headland Company Comparative Balance Sheets As of December

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Headland Company had avaliable at the end of 2025 the following information. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Headland Company \\ Comparative Balance Sheets \\ As of December 31,2025 and 2024 \end{tabular}} \\ \hline * & 2025 & 2024 \\ \hline Cash & $9,950 & $3,990 \\ \hline Accounts recelvable & 20.680 & 12,890 \\ \hline Short-term investments & 22,180 & 29,970 \\ \hline Inventory & 42,300 & 35,140 \\ \hline Prepaid rent & 3,000 & 11.880 \\ \hline Prepoid insurance & 2,080 & 91 \\ \hline Supplies & 1,010 & 74 \\ \hline Land & 124,180 & 176,410 \\ \hline Bulldings & 350,770 & 350,770 \\ \hline Accumulated depreciation-bulldings & (104,490) & (86,770) \\ \hline Equipment & 519,790 & 398,650 \\ \hline Accumulated depreciation-equipment & (129,460) & (112,570) \\ \hline Patents & 44,710 & 49,580 \\ \hline Total assets & $906,700 & $870,105 \\ \hline Accounts payable & $21,890 & $31,870 \\ \hline Income taxes payable & 5.040 & 4,020 \\ \hline Salaries and wages payable & 5,000 & 3,020 \\ \hline Short-term notes payable & 10,100 & 10,100 \\ \hline Long-term notes paryable & 59,520 & 70,530 \\ \hline Bonds paryable & 396.250 & 396.250 \\ \hline Premium on bonds payable & 22.650 & 25,755 \\ \hline Common stock & 238,820 & 221,880 \\ \hline Paid-in capital in excess of par-common stock. & 25,040 & 17,450 \\ \hline Retained earnings & 122,390 & 89.230 \\ \hline Total liabilities and stockholders' equity. & $906,700 & $870.105 \\ \hline \end{tabular} Headland Company Income Statement and Dividend Information For the Year Ended December 31, 2025 \begin{tabular}{lr} \hline Sales revenue & $1,166,560 \\ Cost of goods sold & 749,970 \\ \cline { 2 - 2 } Gross margin & 416,590 \end{tabular} \begin{tabular}{|c|c|c|} \hline Selling expenses & $79,290 & \\ \hline Administrative expenses & 156,820 & \\ \hline D. & 394804 & \\ \hline Depreciation/Amortization expense & 39,480 & \\ \hline Total operating expenses & & 275,590 \\ \hline Income from operations & & 141,000 \\ \hline Other revenues/expenses & & \\ \hline Gain on sale of land & 8,060 & \\ \hline Gain on sale of short-term investment & 4,030 & \\ \hline Dividend revenue & 2,420 & \\ \hline Interest expense & (52,030) & (37,520) \\ \hline Income before taxes & & 103,480 \\ \hline Income tax expense & & 39,470 \\ \hline Net income & , & 64,010 \\ \hline Dividends to common stockholders & & (30,850) \\ \hline To retained earnings & & $33,160 \\ \hline \end{tabular}

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