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SHERIDAN's balance sheet at December 31, 2020, is as follows. SHERIDAN, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 Assets Liabilities Cash $440 Notes payable
SHERIDAN's balance sheet at December 31, 2020, is as follows.
SHERIDAN, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 | ||||||||
Assets | Liabilities | |||||||
Cash | $440 | Notes payable | $1,000 | |||||
Inventory | 1,790 | Pension liability | 345 | |||||
Total current assets | 2,230 | Total liabilities | 1,345 | |||||
Plant and equipment | 2,200 | Stockholders equity | ||||||
Accumulated depreciation | (264 | ) | Common stock | 2,000 | ||||
1,936 | Retained earnings | 1,062 | ||||||
Total assets | $4,166 | Accumulated other comprehensive income | (241 | ) | ||||
Total stockholders' equity | 2,821 | |||||||
Total liabilities and stockholders equity | $4,166 |
Additional information concerning SHERIDANs defined benefit pension plan is as follows. | |||
Projected benefit obligation at 12/31/20 | $816.1 | ||
Plan assets (fair value) at 12/31/20 | 471.1 | ||
Unamortized past service cost at 12/31/20 | 150 | ||
Amortization of past service cost during 2021 | 15 | ||
Service cost for 2021 | 44 | ||
Discount rate | 10 | % | |
Expected rate of return on plan assets in 2021 | 12 | % | |
Actual return on plan assets in 2021 | 11.1 | ||
Contributions to pension fund in 2021 | 69 | ||
Benefits paid during 2021 | 42 | ||
Expected remaining service life of employees | 15 | ||
Average period to vesting of prior service costs | 10 | ||
Unamortized net loss due to changes in actuarial assumptions and deferred net losses on plan assets at 12/31/20 | 91 |
Other information about SHERIDAN is as follows. | ||
Salary expense, all paid with cash during 2021 | $700 | |
Sales, all for cash | 3,000 | |
Purchases, all for cash | 2,020 | |
Inventory at 12/31/21 | 1,810 |
Property originally cost $2,200 and is depreciated on a straight-line basis over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $190 in 2021.
(a1)
Prepare an income statement for 2021. (Round answers to 1 decimal place,
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