Problem 3 Ohio Corporation

Balance Sheet

As of December 31, 2016 and 2015

Assets:

20162015

Cash and cash equivalents. $612,300 $325,000

Marketable securities. 100,000 100,000

Accounts Receivable 408,000 106,250

Inventory 510,000 612,000

Current Assets 1,630,300 1,143,250

Equipment 714,000 654,500

Less: Accumulated depreciation -238,000 -119,000

Land-unused 225,000 70,000

Goodwill 200,000 100,000

Total assets. $2,531,300 $1,848,750

Liabilities

Accounts Payable $197,500 $382,500

Accrued Salaries Payable. 93,500 136,000

Rent Expense Payable 37,400 17,000

Income Tax Payable. 117,300 68,000

Current Liabilities 445,700 603,500

Long-term note payable 950,000 510,000

Total Liabilities 1,395,700 1,113,500

Stockholders' Equity:

Common stock ($6 par value) 714,000 510,000

Retained earnings

421,600 225,250

Total Stockholders Equity 1,135,600 635,250

Total liabilities and stockholders' equity $2,531,300 $1,848,750