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Required information The following information applies to the questions displayed below.] Hanks Company is developing its annual financial statements at December 31, current year. The
Required information The following information applies to the questions displayed below.] Hanks Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Prior Year Current Year Balance sheet at December 31 $ 27,500 31,900 44,300 79,800 $ 17,400 Cash Accounts receivable 33,300 39,100 75,500 $165,300 Merchandise inventory Fixed assets (net) $183,500 $ 32,800 $ 26,300 3,600 Accounts payable Wages payable Note payable, long-term Common stock, no par 4,500 46,000 78,000 53,800 62,400 Retained earnings 22,200 19,200 $183,500 $165,300 Income statement for current year Sales 95,000 Cost of goods sold (51,000) (37,000) 7,000 Expenses Net income Additional data: a. Bought fixed assets for cash, $11,000. b. Paid $7,800 on the long-term note payable. c. Sold unissued common stock for $15,600 cash. d. Declared and paid a $4,000 cash dividend. e. Incurred the following expenses: depreciation, $6,700; wages, $14,000; taxes, $4,000; and other, $12,300
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