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Hyrkas Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of
Hyrkas Corporation's most recent balance sheet and income statement appear below: |
Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) | ||||
Year 2 | Year 1 | |||
Asset: | ||||
Current assets: | ||||
Cash | $ | 140 | $ | 150 |
Accounts receivable | 250 | 260 | ||
Inventory | 150 | 140 | ||
Prepaid expenses | 15 | 15 | ||
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Total current assets | 555 | 565 | ||
Plant and equipment, net | 956 | 936 | ||
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Total assets | $ | 1,511 | $ | 1,501 |
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Liabilities and stockholders' equity: | ||||
Current liabilities: | ||||
Accounts payable | $ | 200 | $ | 190 |
Accrued liabilities | 90 | 90 | ||
Notes payable, short term | 140 | 150 | ||
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Total current liabilities | 430 | 430 | ||
Bonds payable | 230 | 280 | ||
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Total liabilities | 660 | 710 | ||
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Stockholders' equity: | ||||
Common stock, $1 par value | 100 | 100 | ||
Additional paid-in capital--common stock | 110 | 110 | ||
Retained earnings | 641 | 565 | ||
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Total stockholders' equity | 851 | 775 | ||
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Total liabilities and stockholders' equity | $ | 1,511 | $ | 1,485 |
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Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) | |||
Sales (all on account) | $ | 1,370 | |
Cost of goods sold | 854 | ||
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Gross margin | 516 | ||
Selling and administrative expenses | 253 | ||
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Net operating income | 263 | ||
Interest expense | 35 | ||
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Net income before taxes | 228 | ||
Income taxes (30%) | 68 | ||
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Net income | $ | 160 | |
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