Kindly let me know that is Wheatley is Profitable company or not

Wheatley International

Income Statement

1) Revenues Amount in $ Amount in $ Amount in $

Net Sales 1,053,000

2) Cost of Goods Sold

Beginning Inventory 1, 54,800

Add: Merchandise Purchased 3, 16,800

Total Goods Available for sale 4, 71,600

Less: Ending Inventory 1, 26,600

Cost of Goods Sold 3, 45,000

3) Gross Profit 7, 08,000

(1,053,000-3, 45,000)

4) Operating Expenses

Selling Expenses

Salaries 1, 80,000

Advertising 90,000

Total Selling Expenses 2, 70,000

General Expenses

Insurance 54,000

Interest 24,600

Rent 13,800

Utilities 8,400

Total General Expenses 1, 00,800

Total Operating Expenses 3, 70,800

5) Net Income before Tax 3, 37,200

(7, 08,000-3, 70,800)

Less: Income tax expenses (25%) 84300

6) Net Profit after Taxes 2, 52,900

(3, 37,200-84300)

Balance Sheet

Assets

1) Current Assets

Cash 72,000

Accounts Receivable 1, 20,600

Notes Receivable 61,200

Inventory 1, 26,600

Total Current Assets $3, 80,400

2) Fixed Assets

Land 1,500,000

Buildings 1,050,000

Equipment & vehicles 1,066,000

Less: Depreciation 4, 00,000

Total Fixed Asset $3, 216,000

3) Intangible Assets

Goodwill 90,000

Total Intangible Assets $90,000

Total Assets $3,686,400

(3, 80,400 +3,216,000+90,000)

Liabilities & Owners Equity

4) Current Liabilities

Account Payable 45,000

Notes Payable (Short Term) 15,600

Total Current Liabilities $60,600

5) Long Term Liabilities

Notes Payable (Long Term) 2, 10,000

Bonds Payable 60,000

Total Long Term Liabilities $2, 70,000

6) Owners Equity

Common Stock 1,896,000

Retained Earnings 1,459,800

Total Owners Equity $3,355,800

Total Liabilities & Stockholders Equity $3,686,400

(60,600+2, 70,000+3,355,800)