Rashid Corporation

Income Statement

For Year Ended December 31, 2011

Sales$504,000

Cost of goods sold...$327,600

Depreciation expense ..42,000

Other operating expenses.125,500 (495,100)

Other gains (losses)

Gain on sale of equipment7,200

Income before taxes$16,100

Income tax expense.(4,800)

Net income$11,300

Rashid Corporation

Balance Sheets

At December 31

Assets 2011 2010

Cash 64,650 55,800

Accounts Receivable 21,000 29,000

Inventory 58,000 52,100

Equipment 240,000 222,000

Accumulated depreciation 106,000 96,000

Total assets 277,650 262,900

Liabilities

Accounts Payable 28,400 23,700

Income taxes payable 1,050 1,200

Total Liabilities 29,450 24,900

Equity

Common Stock 106,000 106,000

Contributed capital in excess of par value 18,000 18,000

Retained earnings 124,200 114,000

Total Equity 248,200 238,000

Total liabilities and equity 277,650 262,900