Selected year-end financial statements of McCord Corporation follow. (Note: All sales are on credit; selected balance sheet amounts at December 31, 2004, were inventory, $32,400; total assets, $182,400; common stock, $90,000; and retained earnings, $31,300.)
McCORD CORPORATION
Income Statement
For Year Ended December 31, 2005
|
Sales |
$348,600 |
|
Cost of goods sold |
229,150 |
|
Gross profit |
119,450 |
|
Operating expenses |
52,500 |
|
Interest expense |
3,100 |
|
Income before taxes |
63,850 |
|
Income taxes |
15,800 |
|
Net income |
$48,050 |
McCORD CORPORATION
Balance Sheet
December 31, 2005
Assets Liabilities and Equity
|
Cash |
$ 9,000 |
Accounts payable |
$16,500 |
|
Short-term investments |
7,400 |
Accrued wages payable |
2,200 |
|
Accounts receivable, net |
28,200 |
Income taxes payable |
2,300 |
|
Notes receivable (trade)* |
3,500 |
||
|
Merchandise inventory |
31,150 |
Long-term note payable, sec by mortgage on plant asset |
62,400 |
|
Prepaid expenses |
1,650 |
Common stock, $1 par value |
90,000 |
|
Plant assets, net |
152,300 |
00 Retained earnings |
59,800 |
|
Total assets |
$233,200 |
00 Total liabilities and equity |
$233,200 |