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