p13-7b - Name: Date: Instructor: Course: Managerial...

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FileName: c725694332c88dfa945499c025896c8011595c59.xls, Tab: Problem P13-7B, Page 1 of 2, 12/28/2011, 19:03:36 Name: Date: Instructor: Course: NEWMAN COMPANY Comparative Balance Sheets December 31 Assets 2005 2004 Cash $31,000 $20,000 Accounts receivable 38,000 14,000 Merchandise inventory 27,000 20,000 Property, plant, and equipment $60,000 $78,000 Less: Accumulated depreciation (30,000) 30,000 (24,000) 54,000 Total $126,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $29,000 $15,000 Income taxes payable 7,000 8,000 Bonds payable 27,000 33,000 Common stock 18,000 14,000 Retained earnings 45,000 38,000 Total $126,000 $108,000 NEWMAN COMPANY Income Statement For the Year Ended December 31, 2005 Sales $242,000 Cost of Goods Sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 6,000 Net income $34,000 Additional data: 1. Dividends declared and paid were $36,000 2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale. 3. All depreciation expense is in the selling expense category.
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p13-7b - Name: Date: Instructor: Course: Managerial...

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