Assume that you are the president of Nuclear Company. At December 31, 2011, the end of the first year of operations, the following financial data for the company are available:
Cash $ 27,000
Receivables from customers (all considered collectable) 14,000
Inventory of merchandise (based on physical count and priced at cost) 92,000
Equipment owned, at cost less used portion 47,000
Payables to suppliers of merchandise 49,970
Salary payable for 2011 (on December 31, 2011, this was
Owed to an employee who was away because of an emergency and
Returned to work on January 10, 2012, at which time the payment was made)
3,000
Total sales revenue 160,000
Expenses, including the cost of the merchandise sold (excluding income taxes) 107,100
Income taxes expense (at 30% of pretax profit); all paid during 2011 ?
Share capital, 9,000 shares outstanding 90,000
No dividends were declared or paid during 2011.