Required information [The following information applies to the questions displayed below.] Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) $ 25,500 11,600 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 71,000 42,500 Expenses, including the cost of the merchandise sold (excluding income taxes) Accounts payable owed to suppliers Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue Income tax expense at 30% x pretax income; all paid during the current year Common stock (December 31) Dividends declared and paid during the current year 46,840 2,200 118,000 82,200 ? 87,600 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) Answer is complete but not entirely correct. HIGHLIGHT CONSTRUCTION COMPANY Income Statement For the Year Ended December 31, Current Year Total sales revenue Total expenses Pretax income Salary payable Income tax expense Net income $ 118,000 82,200 35,800 2,200 10,080 $ 22,800