Masterson Exercise Equipment, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 716,000 341,000 Cost of Goods Sold Gross Profit 375,000 Operating Expenses: Depreciation Expense $ 53,000 180,000 Other Operating Expenses Total Operating Expenses 233,000 $ 142,000 Net Income 1. Compute the amount of Masterson Exercise's acquisition of plant assets. Assume the acquisition was for cash. Masterson Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $42,300. No cash was received upon disposal. 2. Compute new borrowing or payment of long-term notes payable, with Masterson Exercise having only one long-term notes payable transaction during the year. 3. Compute the issuance of common stock with Masterson Exercise having only one common stock transaction during the year. 4. Compute the payment of cash dividends. Masterson Exercise Equipment, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 18,000 22,000 $ 50,000 82,000 45,000 92,000 Accounts Receivable Merchandise Inventory Long-term Assets: Plant Assets 270,100 220,400 Accumulated Depreciation-Plant Assets (44,100) 93,000 (33,400) 71,000 Investments $ Total Assets 473,000 $ 413,000 Liabilities Current Liabilities: Accounts Payable Salaries Payable $ 82,000 $ 78,000 4,500 7,500 Long-term Liabilities: Notes Payable 58,000 66,000 Total Liabilities 144,500 151,500 Stockholders' Equity Common Stock, no par 48,000 280,500 35,000 226,500 Retained Earnings 328,500 261,500 Total Stockholders' Equity $ 473,000 $ 413,000 Total Liabilities and Stockholders' Equity