The lease payment number is 50,500

Sterling Company Income Statement for the Year Ended December 31, 2022 Sales revenue $10,021,000 Less: Cost of goods sold 7,499,000 Gross profits $2,522,000 Less: Operating expenses Selling expense $310,000 General and administrative expenses 631,000 Lease expense 50,500 Depreciation expense 213,000 Total operating expense 1,204,500 Operating profits $1,317,500 Less: Interest expense 200,000 Net profits before taxes $1,117,500 Less: Taxes (rate = 21%) 234,675 Net profits after taxes $882.825 Less: Preferred stock dividends 47,400 Earnings available for common stockholders $835,425 Earnings per share (EPS) $4.28 1 Sterling Company Balance Sheet December 31, 2022] 2 Assets Liabilities and Stockholders' Equity 3 Current assets Current liabilities 1 Cash $189,000 Accounts payable [b] $884,000 Marketable securities 52000 Notes payable 186000 5 Accounts receivable 812000 Accruals 120000 7 Inventories 942000 Total current liabilities $1,190,000 3 Total current assets $1,995,000 Long-term debt (includes 3 financial leases) [c] $2,958,500 LO Gross fixed assets (at cost) [a] $12,024,000 Stockholders' equity -1 Less: Accumulated depreciation 2976000 Preferred stock (23,700 2 Net fixed assets $9,048,000 shares, $2.00 dividend) $990,000 3 Common stock (195,000 4 Other assets $977,000 shares at $3.50 par) (d) 682500 5 Paid-in capital in excess of 6 par value 5220000 _7 Retained earnings 979000 8 Total stockholders' equity $7,871,500 9 Total liabilities and LO Total assets $12,020,000 stockholders' equity $12,020,000 1 [a] The firm has an 8-year financial lease requiring annual beginning-of-year payments of $@CNUM{50500}. Five years of the lease have yet to run. 2 [b] Annual credit purchases of $6,221,000 were made during the year. 3 [c] The annual principal payment on the long-term debt is $90,000. 4 [d] On December 31, 2022, the firm's common stock closed at $38.54 per share. The fixed-payment coverage ratio is I (Round to two decimal places.)