The balance sheet for December 31, 2012, December 31, 2011, and the income statement for the year ended December 31, 2012, for Rocket Company follows.

Rocket Company

Balance Sheet

December 31, 2012 and 2011

2012

2011

Assets

Cash

$ 100,000

$ 80,000

Accounts receivable, net

240,000

280,000

Inventory

320,000

400,000

Land

200,000

200,000

Building and equipment

520,000*

460,000

Accumulated depreciation

(340,000)

(280,000)

Total assets

$1.040,000

$1,140,000

Liabilities and Stockholders' Equity

Accounts payable

$ 120,000

$ 140,000

Income taxes payable

16,000

12,000

Wages payable

20,000

12,000

Current notes payable

200,000**

240,000

Common stock

440,000***

400,000

Retained earnings

244,000

336,000

Total liabilities and stockholders' equity

$520,000

$1,140,000

* During 2012 cash payments for building and equipment $60,000.

** During 2012 cash paid for retirement of notes payable $40,000.

*** During 2012 cash received from issuance of stock.

Rocket Company Balance Sheet December 31, 2012 and 2011 2012 2011 Assets Cash $ 100,000 $ 80,000 Accounts receivable, net 240,000 280,000 Inventory 400,000 320,000 200,000 Land 520,000* Building and equipment Accumulated depreciation 200,000 460,000 (280,000) $1,140,000 (340,000) Total assets $1.040,000 $ 120,000 $ 140,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Wages payable Current notes payable Common stock 16,000 12,000 20,000 12,000 200,000** 240,000 440,000*** 244,000 Retained earnings Total liabilities and stockholders' equity 400,000 336,000 $1,140,000 $520,000 * During 2012 cash payments for building and equipment $60,000. ** During 2012 cash paid for retirement of notes payable $40,000. *** During 2012 cash received from issuance of stock. Rocket Company Balance Sheet December 31, 2012 and 2011 2012 2011 Assets Cash $ 100,000 $ 80,000 Accounts receivable, net 240,000 280,000 Inventory 400,000 320,000 200,000 Land 520,000* Building and equipment Accumulated depreciation 200,000 460,000 (280,000) $1,140,000 (340,000) Total assets $1.040,000 $ 120,000 $ 140,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Wages payable Current notes payable Common stock 16,000 12,000 20,000 12,000 200,000** 240,000 440,000*** 244,000 Retained earnings Total liabilities and stockholders' equity 400,000 336,000 $1,140,000 $520,000 * During 2012 cash payments for building and equipment $60,000. ** During 2012 cash paid for retirement of notes payable $40,000. *** During 2012 cash received from issuance of stock