Question
Some recent financial statements for Earl Grey Golf Corp. follow. EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position Assets Liabilities and Owners
Some recent financial statements for Earl Grey Golf Corp. follow. EARL GREY GOLF CORP. 2017 and 2018 Statement of Financial Position Assets Liabilities and Owners Equity 2017 2018 2017 2018 Current assets Current liabilities Cash $ 21,900 24,500 Accounts payable $ 19,720 $ 27,500 Accounts receivable 11,716 15,600 Notes payable 15,000 9,400 Inventory 23,734 27,500 Other 10,043 18,300 Total $ 57,350 67,600 Total $ 44,763 $ 55,200 Long-term debt $ 60,000 $ 74,800 Owners equity Common stock and paid-in surplus $ 44,000 $ 44,000 Retained earnings 146,655 256,000 Fixed assets Net plant and equipment $ 238,068 362,400 Total $ 190,655 $ 300,000 Total assets $ 295,418 430,000 Total liabilities and owners equity $ 295,418 $ 430,000 EARL GREY GOLF CORP. 2018 Statement of Comprehensive Income Sales $ 521,872 Cost of goods sold 254,500 Depreciation 32,800 Earnings before interest and tax $ 234,572 Interest paid 12,330 Taxable income $ 222,242 Taxes (40%) 88,897 Net income $ 133,345 Dividends $ 24,000 Additions to retained earnings 109,345 Earl Grey Golf Corp. has 40,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $30.
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