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Track Inc Income Statement For the Year Ended December 31, 2019 Revenues Gain on sale of land Total revenues Expenses: Cost of goods sold Operating

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Track Inc Income Statement For the Year Ended December 31, 2019 Revenues Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net Income \\[ \\begin{array}{r} \\$ 300,000 \\\\ 10,000 \\\\ 310,000 \\end{array} \\] \\[ \\begin{array}{r} 120,000 \\\\ 25,000 \\\\ 47,000 \\\\ 16,000 \\\\ 12,000 \\end{array} \\] \\[ \\begin{array}{l} 220,000 \\\\ \\$ 90,000 \\end{array} \\] Total Liabilities and Equity \\( \\$ 1,088,000 \\) \\( \\$ 910,000 \\) Additional Information for 2019: 1. Purchase additional investment in stocks for \\( \\$ 86,000 \\). 2. Sell land costing \\( \\$ 90,000 \\) for \\( \\$ 100,000 \\) resulting in a \\( \\$ 10,000 \\) gain on sale of land. 3. Issue common stock in exchange for cash \\( \\$ 50,000 \\). 4. Declared and paid a cash dividend of \\( \\$ 25,000 \\). 5. Purchase \\( \\$ 80,000 \\) in equipment by borrowing \\( \\$ 80,000 \\) with a note payable due in three years. No cash is exchanged in the transaction. Track Inc Balance Sheet For the Year Ended December 31, 2019 Assets 2019 2018 Current Assets: Cash Accounts receivable Inventory Prepaid rent Long-Term Assets: Investment in stock Land Equipment Accumulated depreciation Total Assets \\( \\$ 363,000 \\) 83,000 121,000 7,000 186,000 170,000 305,000 \\( -147,000 \\) \\( \\$ 1,088,000 \\) \\( \\$ 187,000 \\) 95,000 138,000 5,000 100,000 260,000 225,000 \\( -100,000 \\) \\( \\$ 910,000 \\) Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Interest payable Income tax payable Long-Term Liabilities: Notes payable Stockholders' Equity: Common stock Retained earnings \\( \\$ 40,000 \\) 1,000 12,000 285,000 400,000 350,000 \\( \\$ 58,000 \\) 2,000 10,000 205,000 350,000 285,000

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