Ortega's pizza balance sheet , december 31, last year and this year.

Chapter 5, Question 8 Ortega's Pizza Condensed Income Statement and Statement of Retained Earnings For the Period: January 1 through December 31, This Year INCOME STATEMENT SALES $700,000 Cost of Sales 210.000 GROSS PROFIT 490,000 Operating Expenses (excluding depreciation) 388,000 Depreciation 14,000 OPERATING INCOME 88,000 Interest 30,000 INOME BEFORE INCOME TAXES 58,000 Income Taxes (40%) 23,000 NET INCOME 35,000 STATEMENT OF RETAINED EARNINGS Retained Earnings, December 31, Last Year Net Income for This Year Subtotal Cash Dividends Paid This Year Retained Earnings, December 31, This Year 50,000 35,000 85,000 20,000 $65,000 Cash Dividends Paid This Year Retained Earnings, December 31, This Year 20,000 $65,000 Ortega's Pizza Balance Sheets December 31, Last Year and This Year Last Year This Year 1 Sources Uses ASSETS Current Assets Cash Marketable Securities Net Receivables Inventories Total Current Assets $42.000 85.000 93,000 58.000 278,000 $30.000 91.000 80,000 67.000 268,000 Property and Equipment Less Accumulated Depreciation Net Property and Equipment 965,000 40.000 925,000 939,000 54.000 885,000 TOTAL ASSETS 1207.000 1.157.000 LIABILITIES AND OWNERS' EQUITY Current Liabilities Accounts Payable Notes Payable Accrued Wages Total Current Liabilities 40,000 125.000 38.000 203.000 45,000 150.000 23.000 218,000 Long Term Liabilities Long-Term Debt Total Liabilities 500.000 703,000 2000 518,000 Owners' Equity Common Stock Pald in Capital Retained Earnings Total Owners' Equity 75.000 95.000 375.000 75.000 ERL 50.000 65.000 500.000 95.000 TOTAL LIABILITIES AND OWNERS' EQUITY $1.200.000 51.150.000 TOTAL SOURCES AND USES OF FUNDS