Selected year end financial statements of McCord Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $53,900; total assets, $219,400; common stock, $85,000; and retained earnings, $52,148.)
| McCORD CORPORATION Income Statement For Year Ended December 31, 2011 |
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| Sales | $ | 455,600 |
| Cost of goods sold | 297,850 | |
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| Gross profit | 157,750 | |
| Operating expenses | 99,300 | |
| Interest expense | 4,100 | |
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| Income before taxes | 54,350 | |
| Income taxes | 21,894 | |
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| Net income | $ | 32,456 |
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| McCORD CORPORATION Balance Sheet December 31, 2011 |
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| Assets | Liabilities and Equity | |||||
| Cash | $ | 8,000 | Accounts payable | $ | 18,500 | |
| Short term investments | 9,400 | Accrued wages payable | 3,800 | |||
| Accounts receivable, net | 33,400 | Income taxes payable | 4,700 | |||
| Notes receivable (trade)* | 4,000 | Long term note payable, secured | ||||
| Merchandise inventory | 34,150 | by mortgage on plant assets | 72,400 | |||
| Prepaid expenses | 2,800 | Common stock | 85,000 | |||
| Plant assets, net | 150,300 | Retained earnings | 57,650 | |||
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| Total assets | $ | 242,050 | Total liabilities and equity | $ | 242,050 | |
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| * These are short term notes receivable arising from customer (trade) sales. |
| Required: | ||||||||||||||||||||||||
| Compute the following. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response):
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