Income Statement year ending 2020 Sales Revenues. $90,000 Cost of goods sold 54,500 Fixed costs 12,000 Selling, general, and administrative expenses 18,250 Depreciation 1,000 EBIT 4,250 500 Interest expense Taxable Income 3,750 750 Taxes Net Income ***Tax rate 3,000 20% ASSETS Current Assets Cash Accounts receivable Inventories Total current assets Gross Fixed assets Accumulated depreciation Net Fixed assets Intangible assets TOTAL ASSETS Partial Balance Sheet 12/31/2019 LIABILITIES Current Liabilities 1,000 Notes payable 5,000 Accounts payable 5.000 Total current liabilities Long-term debt 11,000 Total Liabilities 90,000 OWNERS' EQUITY 10.000 Retained earnings (1) 80,000 Common stock 0 Total owner's equity 22 $91,000 TOTAL LIABILITIES & OWNER'S EQUITY $9 (1) These are cumulative retained earnings but textbook simply calls it retained earnings ASSETS Current Assets Cash Accounts receivable Inventories Accumulated depreciation Total current assets Gross Fixed assets Net Fixed Assets Intangible assets Total long-term assets TOTAL ASSETS Partial Balance Sheet 12/31/2020- LIABILITIES Current Liabilities 3,000 Notes payable 3,000 Accounts payable 8.000 Total current liabilities 14,000 Long-term debt 80,000 Total liabilities 11.000 OWNERS' EQUITY 69,000 0 Retained earnings Common stock 69,000 Total owner's equity 1 1 5 $83,000 TOTAL LIABILITIES & OWNER'S EQUITY SS a) The company purchased fixed assets during 2020 b) The company purchased common shares during 2020 c) The company did not issue common stock during 2020 d) The change from 2019 to 2020 in Long-term Debt is a source of funds (cash inflow) e) The company issued common stock during 2020