Kinder Care Company
cybacatx
kinder_care_company_question.doc|
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Kinder Care Company |
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Balance Sheet |
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December 31 |
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2015 |
2014 |
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Cash |
135,900 |
111,200 |
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Accounts receivable (net) |
38,300 |
20,300 |
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Inventory |
35,000 |
26,000 |
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Long-term investments |
- |
20,000 |
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Property, plant & equipment |
216,500 |
150,000 |
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Accumulated depreciation |
(57,700) |
(25,000) |
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368,000 |
302,500 |
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Accounts payable |
17,000 |
35,500 |
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Accrued liabilities |
21,000 |
27,000 |
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Long-term notes payable |
70,000 |
50,000 |
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Common stock |
185,000 |
145,000 |
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Retained earnings |
75,000 |
45,000 |
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368,000 |
302,500 |
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Sales Revenue……………………………………………….. |
$ 512,000 |
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Cost of goods sold………………………………………… |
291,000 |
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Gross margin ………………….. |
221,000 |
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Operating expenses………………………………………… |
91,500 |
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Pre-tax operating income |
129,500 |
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Gain on sale of investments |
15,000 |
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Pre-tax income |
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144,500 |
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Tax |
42,000 |
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Net income……………………………………………………… |
$ 102,500 |
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Additional data: |
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1 |
Depreciation on plant assets for the year, $32,700. |
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2 |
Sold the long-term investments for $35,000. |
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Purchased machinery costing $66,500, issued note for $20,000 and paid remainder in cash. |
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Paid a $40,000 long-term note payable by issuing common stock. |
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5 |
Issued additional long-term notes payable during the year. |
