Question 5

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY Income Statements For the Years Ended December 31
		2014		2013
Net sales		$1,894,106		$1,754,066
Cost of goods sold		1,062,106		1,009,566
Gross profit		832,000		744,500
Selling and administrative expenses		503,566		482,566
Income from operations		328,434		261,934
Other expenses and losses
Interest expense		24,069		22,069
Income before income taxes		304,365		239,865
Income tax expense		94,069		75,069
Net income		$ 210,296		$ 164,796

OSBORNE COMPANY Balance Sheets December 31
Assets		2014		2013
Current assets
Cash		$ 60,100		$ 64,200
Debt investments (short-term)		74,000		50,000
Accounts receivable		121,366		106,366
Inventory		128,069		117,569
Total current assets		383,535		338,135
Plant assets (net)		663,774		535,074
Total assets		$1,047,309		$873,209
Liabilities and Stockholders