SyaRa Break lo Exercise 23-14 Sarasota Inc., a greeting card company, had the following statements prepared as of De 2017. SARASOTA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400 Prepaid rent 4,900 4,000 Equipment 153,100 130,500 Accumulated depreciation-equipment (35,000) (24,700) Copyrights 45,900 50,500 Total assets $311,800 $295,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,000 4.000 8,100 8,100 59,900 100,000 30,000 55,700 $311,800 $39,700 5,900 4,100 10,100 68,600 100,000 30,000 36,900 $295,300 SARASOTA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,500 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $333,125 173,600 159,525 118,900 40,625 9,500 31,125 6,225 $24,900 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have occurred on the investments during the year. ilmain.uni SyaRa Break lo Exercise 23-14 Sarasota Inc., a greeting card company, had the following statements prepared as of De 2017. SARASOTA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 59,400 Prepaid rent 4,900 4,000 Equipment 153,100 130,500 Accumulated depreciation-equipment (35,000) (24,700) Copyrights 45,900 50,500 Total assets $311,800 $295,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,000 4.000 8,100 8,100 59,900 100,000 30,000 55,700 $311,800 $39,700 5,900 4,100 10,100 68,600 100,000 30,000 36,900 $295,300 SARASOTA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,500 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $333,125 173,600 159,525 118,900 40,625 9,500 31,125 6,225 $24,900 Additional information: 1. Dividends in the amount of $6,100 were declared and paid during 2017. 2. Depreciation expense and amortization expense are included in operating expenses 3. No unrealized gains or losses have occurred on the investments during the year. ilmain.uni