HW 2

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

	Current Year	Previous Year
Balance Sheet at December 31
Cash	$ 32,090	$ 27,000
Accounts Receivable	33,200	27,100
Inventory	39,200	37,100
Equipment	107,500	91,000
Accumulated DepreciationEquipment	(28,200)	(24,100)
Total Assets	$ 183,790	$ 158,100
Accounts Payable	$ 34,200	$ 26,100
Salaries and Wages Payable	1,090	1,200
Notes Payable (long-term)	29,900	35,000
Common Stock	83,200	71,700
Retained Earnings	35,400	24,100
Total Liabilities and Stockholders Equity	$ 183,790	$ 158,100
Income Statement
Service Revenue	$ 111,000
Cost of Goods Sold	65,500
Other Expenses	34,200
Net Income	$ 11,300

Additional Data:

Bought equipment for cash, $16,500.

Paid $5,100 on the long-term notes payable.

Issued new shares of stock for $11,500 cash.

No dividends were declared or paid.

Other expenses included depreciation, $4,100; salaries and wages, $19,100; taxes, $5,100; utilities, $5,900.

Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.