Problem #2 (3/10): XYZ Industries bought land and built its plant 10 years ago Land is not depreciated The depreciation on the building and plant is calculated using the straight-line method, with a life of 20 years and a salvage value of $2,000,000 The depreciation for the equipment, all of which was purchased at the same time the plandavas constructed, is calculated using declining-balance at 10% Complete the Balance Sheet below XYZ Industries Balance Sheet (as of June 30, 2016) Assets Liabilities and Owners' Equity Current Assets Current Liabilities Cash 1.950,000 Accounts Payable 1,060,000 Accounts Receivable 950,000 Notes Payable 190,000 Securities 4.100,000 Accrued Expense 850,000 Intextones 1,800,000 Total Current Lish ilities 2,100,000 Prepaid Expenses 100,000 Total Current Assets 8,900,000 Long Term Liabilities Mortgage 600,000 Long-Term Assets Long-Term Debt 600,000 Land 550,000 Total Long Term Liabilities 1,200,000 Building and Plant 5,000,000 Les accumulated depreciation 2450,000 Owners' Equity (Net Worth) 250,000 Preferred Shares 2,000,000 Equipment 800.000 Common Shares 3.500.000 Les accumulatod depreciation Retained Earrings Total Owners' Equity Total Long Term Assets Total Libilities and Owners' Equity Total Assets Income Statement for XYZ Industries (July 1, 2015 June 30, 2016) Revenues Expenses Sales 9,500,000 Operating Expenses 924,006 Cost of Goods Sold 4,950,000 Depreciation Expense 180,994 Gross Profit 4,550,000 Interest Expense 350,000 Total Expenses 1,455,000 Net Income Before Taxes 3,095,000 Income Taxes (26.5%) 820,175 Net Income After Taxes 2.274,825