ment 1 - Questions.docx Open with Google Docs 7-1. Togo Co. has the following financial statements. Togo Co. Income Statement for the Year Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses $3,700,000 Depreciation 500,000 Operating income Less: Interest expense $ 100,000 Income taxes 800,000 Net income $18,000,000 12,000,000 $ 6,000,000 4,200,000 $ 1,800,000 900,000 900,000 $ Togo Co. Balance Sheet at the End of the Year Current assets: Cash $1,000,000 Accounts receivable 3,600,000 Inventory 2,400,000 $7,000,000 Long-term assetsAt cost $5,000,000 Accumulated depreciation 3.000.000 2,000,000 Total assets $ 9,000,000 Liabilities & Shareholders' Equity Current liabilities: Trade accounts payable $2.250,000 Other current liabilities Page 5 / 6 - 7000 + $3,000,000 Long-term liabilities: Mortgage 11,500,000 ment 1 - Questions.docx Open with Google Docs 7-1. Togo Co. has the following financial statements. Togo Co. Income Statement for the Year Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses $3,700,000 Depreciation 500,000 Operating income Less: Interest expense $ 100,000 Income taxes 800,000 Net income $18,000,000 12,000,000 $ 6,000,000 4,200,000 $ 1,800,000 900,000 900,000 $ Togo Co. Balance Sheet at the End of the Year Current assets: Cash $1,000,000 Accounts receivable 3,600,000 Inventory 2,400,000 $7,000,000 Long-term assetsAt cost $5,000,000 Accumulated depreciation 3.000.000 2,000,000 Total assets $ 9,000,000 Liabilities & Shareholders' Equity Current liabilities: Trade accounts payable $2.250,000 Other current liabilities Page 5 / 6 - 7000 + $3,000,000 Long-term liabilities: Mortgage 11,500,000