| Found an online version of the old book which states: |
| PROBLEM 13.4A |
| TREECE, INC. |
| INCOME STATEMENT |
| FOR THE YEAR ENDED DECEMBER 31, 2015 |
| Revenue: |
| Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,850,000 |
| Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,000 |
| Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 |
| Gain on sales of marketable securities . . . . . . . . . . . . . . . . . . . 4,000 |
| Total revenue and gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,028,000 |
| Costs and expenses: |
| Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,550,000 |
| Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980,000 |
| Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,000 |
| Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 |
| Total costs and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,805,000 |
| Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 223,000 |
| End of Beginning |
| Year of Year |
| Selected account balances: | | | | End of year / Beginning of year |
| Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 650,000 / $ 720,000 |
| Accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 / 6,000 |
| Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 / 765,000 |
| Short-term prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 / 15,000 |
| Accounts payable (merchandise suppliers) . . . . . . . . . . . . . . . . 570,000 / 562,000 |
| Accrued operating expenses payable . . . . . . . . . . . . . . . . . . . . 65,000/ 94,000 |
| Accrued interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000/ 12,000 |
| Accrued income taxes payable. . . . . . . . . . . . . . . . . . . . . . . . . . 22,000/ 35,000 |
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chapter_1213-accounting1.xlsx
