Accounting, Analysis, and Principles The following information is taken from the 2014 annual report of Bugant, Inc. Bugant's fiscal year ends December 31 of each year. Bugant's December 31, 2014, balance sheet is as follows.
Additional information concerning 2015 is as follows.
1. Sales were $3,500, all for cash.
2. Purchases were $2,000, all paid in cash.
3. Salaries were $700, all paid in cash.
4. Property, plant, and equipment was originally purchased for $2,000 and is depreciated straight-line over a 25-year life with no salvage value.
5. Ending inventory was $1,900.
6. Cash dividends of $100 were declared and paid by Bugant.
7. Ignore taxes.
8. The market rate of interest on bonds of similar risk was 12% during all of 2015.
9. Interest on the bonds is paid semiannually each June 30 and December 31.