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Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale $ 340,000 Cost of goods sold $ 250,100 Gross Profit $ 89,900 Operating Expenses
Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale $ 340,000 Cost of goods sold $ 250,100 Gross Profit $ 89,900 Operating Expenses $ 55,000 Loss on Sale of equipment $ 2,500 $ 57,500 Profit from Operations $ 32,400 Other expenses Interest Expense $ 3,500 Profit before Income Tax $ 28,900 Income Tax Expense $ 12,000 Profit $ 16,900 Additional Information: Operating expenses include depreciation expense of $10,000 Accounts Payable related to the purchase of inventory Equipment that cost $12,500 was sold at a loss of $2,500 New equipment was purchased during the year for $8,500 Dividends declared and paid in 20X5 totalled $3,000 Common shares were sold for $12,000 cash Interest payable in 20X5 was $800 greater than interest payable in 20X4 Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5 20X5 20X4 Cash $ 6,450 $ 4,100 Accounts Receivable $ 72,000 $ 6,500 Inventory $ 110,250 $ 140,000 Prepaid Expenses $ 1,750 $ 1,020 Equipment $ 96,000 $ 100,000 Accumulated Depreciation - equipment $ (50,000 ) $ (42,000 ) Total Assets $ 236,450 $ 209,620 Account Payable $ 16,230 $ 9,900 Interest Payable $ 810 $ 10 Income taxes payable $ 10,800 $ 9,500 Dividends Payable $ 1,800 $ 2,800 Long-term Notes Payable $ 55,000 $ 62,000 Common shares $ 135,000 $ 123,000 Retained Earnings $ 16,310 $ 2,410 Total Liabilities & Shareholders' Equity $ 236,450 $ 209,620 Round answers to fit 2 decimal places in all questions (in % questions a 0.12 is presented as 12%, so a 0.124 is rounded as 12% and 0.127 is rounded as 13%) Total return on assets at December 20X5 was: Multiple Choice Between 17% and 33% Not enough data provided to calculate it Equal or below 16% Equal or above 69% Between 34% and 68%
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