abc company 039 s current financial information before without expansion 497885

ABC Company’s current financial information (before/without expansion) Dec. 31,20X2 Dec. 31,20X1 Cash $50,000 $70,000 Accounts receivable (net) $120,000 $180,000 Merchandise inventory $350,000 $280,000 Property plant, & equipment $400,000 $300,000 Less: Accumulated depreciation $(170,000) $(100,000) Total assets $750,000 $730,000 Accounts payable $250,000 $210,000 Income taxes payable $40,000 $10,000 Common stock $240,000 $240,000 Retained earnings $220,000 $270,000 Total liabilities & stock, equity $750,000 $730,000 The firm’s accrual-basis income statement revealed the following data: Sales $1,200,000 Cost of goods sold $800,000 selling and administrative expenses $250,000 Depreciation expense $70,000 Income taxes $30,000 Dividends declared and paid during 19X2 $100,000 ABC purchased $100,000 of equipment for cash on August 14. (There was no interest expense.)