P4.7 You have the following information from a restaurant operation: Balance Sheets, December 31 Assets Cash Credit card receivables Accounts receivable Food inventory Prepaid expenses Land Building Equipment Furnishings Accumulated depreciation Total Assets Liabilities & Stockholders' Equity Accounts payable Bank note payable Income tax payable Accrued expenses payable Mortgage payable (current) Long-term mortgage payable Common stock Retained earnings Liabilities & Stockholders' Equity Year 0007 Year 0008 $9,100 $14,200 4,920 6,240 5,280 6,160 14,600 13,900 3,800 4,500 32,000 32,000 315,800 323,200 66,640 73,200 16,660 18,300 ( 113,700) ( 124,500) $335,100 Year 0007 $ 16,700 $367,200 Year 0008 $12,500 4,900 3,600 12,500 12,600 7,100 7,500 10,400 12,100 192,000 180,900 10,000 10,000 101,500 128,000 $335,100 $367,200 Income Statement (Condensed) For the Year Ending December 31, 0008 Sales revenue Cost of sales $301,900 Operating expenses 381,200 Total Operating Costs Operating income, before interest and tax Interest expense Income before tax Income tax Net Income $742,600 (683,100) $ 59,500 (19,400) $40,100 (12,600) $ 27,500