Problem 12-07A.docx - Problem 12-07A Presented below are...

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Problem 12-07A Presented below are the financial statements of Bonita Industries. Bonita Industries Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 63,000 $ 36,000 Accounts receivable 36,000 25,200 Inventory 50,400 36,000 Property, plant, and equipment 108,000 140,400 Accumulated depreciation (57,600 ) (43,200 ) Total $199,800 $194,400 Liabilities and Stockholders’ Equity Accounts payable $ 34,200 $ 27,000 Income taxes payable 12,600 14,400 Bonds payable 30,600 59,400 Common stock 32,400 25,200 Retained earnings 90,000 68,400 Total $199,800 $194,400 Bonita Industries Income Statement For the Year Ended December 31, 2022 Sales revenue $435,600 Cost of goods sold 315,000 Gross profit 120,600 Selling expenses $32,400 Administrative expenses 10,800 43,200 Income from operations 77,400 Interest expense 5,400 Income before income taxes 72,000 Income tax expense 14,400 Net income $ 57,600 Additional data: 1. Depreciation expense was $31,500. 2. Dividends declared and paid were $36,000. 3. During the year equipment was sold for $15,300 cash. This equipment cost $32,400 originally and had accumulated depreciation of $17,100 at the time of sale.

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