P$1-1($Algo$)$ Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO$1-1$

Skip to question

$[$The following information applies to the questions displayed below.$]$

Assume that you are the president of Highlight Construction Company. At the end of the first year of operations $($December $31),$ the following financial data for the company are available:

Cash $ $26,300$

Receivables from customers $($all considered collectible$)11,100$

Inventory of merchandise $($based on physical count and priced at cost$)74,000$

Equipment owned, at cost less used portion $42,100$

Accounts payable owed to suppliers $47,140$

Salary payable $($on December $31,$ this was owed to an employee who will be paid on January $10)3,200$

Total sales revenue $127,000$

Expenses, including the cost of the merchandise sold $($excluding income taxes$)82,200$

Income tax expense at $30\%\backslash$times pretax income; all paid during the current year $?$

Common stock $($December $31)82,300$

Dividends declared and paid during the current year $10,500$

$($Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.$)$