ABC Company's current financial information (before/without expansion) |
| Dec. 31,19X2 | Dec. 31,19X1 |
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.) |