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The financial statements of the Precious Company appear below. PRECIOUS COMPANY Comparative Balance Sheet December 31 2020 Cash $ 25,000 Debt investments 20,000 Accounts receivable
The financial statements of the Precious Company appear below. PRECIOUS COMPANY Comparative Balance Sheet December 31 2020 Cash $ 25,000 Debt investments 20,000 Accounts receivable (net) 50,000 Inventory .......... 140,000 Property, plant and equipment (net) 170,000 Total assets $405,000 Liabilities and stockholders' equity Accounts payable $ 25,000 Short-term notes payable 40,000 Bonds payable ...... 75,000 Common shares 160,000 Retained earnings 105,000 Total liabilities and shareholders equity .....- $405,000 PRECIOUS COMPANY Income Statement For the Year Ended December 31, 2020 Net sales (all on credit) Cost of goods sold Gross profit ......- Expenses Interest expense $11,000 Selling expenses 30,000 Administrative expenses 20,000 Total expenses Income before income taxes Income tax expense Net income .. Additional information: a. Cash dividends of $50,000 were declared and paid on common stock in 2020. b Weighted-average number of shares of common stock outstanding during 2020 %
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