Question
Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items:
Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $ 708,000 318,000 390,000 151,000 239,000 5,000 244,000 73,200 $ 170,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Year 2 $ 106,100 Accounts receivable Inventory Prepaid expenses 279,000 318,000 Year 1 $ 65,800 130,000 288,000 9,000 18,000 Total current assets 712,100 501,800 Property, plant, and equipment 626,000 501,000 Less accumulated depreciation 166,500 130,100 Net property, plant, and equipment Loan to Hymans Company 459,500 370,900 41,000 0 Total assets $1,212,600 $ 872,700
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