Ian Manufacturing Company was organized five years ago and manufactures toys. Its most recent three years'...
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Ian Manufacturing Company was organized five years ago and manufactures toys. Its most recent three years' balance sheets and income statements are reproduced below: IAN MANUFACTURING COMPANY Balance Sheets June 30, Year 5, Year 4, and Year 3 Year 5 Year 4 Year 3 Assets Cash.... $ 12,000 $ 15,000 $16,000 Accounts receivable, net.. 183,000 80,000 60,000 Inventory... 142,000 97,000 52,000 Other current assets. 5,000 6,000 4,000 Plant and equipment, net.. 160,000 110,000 70,000 Total assets $502,000 $308,000 $202,000 Liabilities and Equity Accounts payable... $147,800 $ 50,400 $ 22,000 Federal income tax payable 30,000 14,400 28,000 Long-term liabilities.. 120,000 73,000 22,400 Common stock, $5 par value 110,000 110,000 80,000 Retained earnings.. 94,200 60,200 49,600 Total liabilities and equity $502,000 $308,000 $202,000 IAN MANUFACTURING COMPANY Condensed Income Statements For Years Ended June 30, Year 5, Year 4. Year 3 Year 5 Year 4 Year 3 Net sales....... $1,684,000 $1,250,000 $1,050,000 Cost of goods sold. (927,000) (810,000) (512,000) Gross profit... 757,000 440,000 538,000 Marketing and administrative costs... (670,000) (396,700) (467,760) Operating income 87,000 43,300 70,240 Interest cost (12,000) (7,300) (2,240) Income before income tax 75,000 36,000 68,000 Income tax... (30,000) (14,400) (28,000) Net income 45,000 $ 21,600 $ 40,000 Ian Manufacturing Company was organized five years ago and manufactures toys. Its most recent three years' balance sheets and income statements are reproduced below: IAN MANUFACTURING COMPANY Balance Sheets June 30, Year 5, Year 4, and Year 3 Year 5 Year 4 Year 3 Assets Cash.... $ 12,000 $ 15,000 $16,000 Accounts receivable, net.. 183,000 80,000 60,000 Inventory... 142,000 97,000 52,000 Other current assets. 5,000 6,000 4,000 Plant and equipment, net.. 160,000 110,000 70,000 Total assets $502,000 $308,000 $202,000 Liabilities and Equity Accounts payable... $147,800 $ 50,400 $ 22,000 Federal income tax payable 30,000 14,400 28,000 Long-term liabilities.. 120,000 73,000 22,400 Common stock, $5 par value 110,000 110,000 80,000 Retained earnings.. 94,200 60,200 49,600 Total liabilities and equity $502,000 $308,000 $202,000 IAN MANUFACTURING COMPANY Condensed Income Statements For Years Ended June 30, Year 5, Year 4. Year 3 Year 5 Year 4 Year 3 Net sales....... $1,684,000 $1,250,000 $1,050,000 Cost of goods sold. (927,000) (810,000) (512,000) Gross profit... 757,000 440,000 538,000 Marketing and administrative costs... (670,000) (396,700) (467,760) Operating income 87,000 43,300 70,240 Interest cost (12,000) (7,300) (2,240) Income before income tax 75,000 36,000 68,000 Income tax... (30,000) (14,400) (28,000) Net income 45,000 $ 21,600 $ 40,000
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