Selected year-end financial statements of Cadet Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2010, were inventory, $56,900; total assets, $219,400; common stock, $85,000; and retained earnings, $52,348.)
CADET CORPORATION
Income Statement
For Year Ended December 31, 2011
Sales $456,600
Cost of goods sold
297,450
Gross profit 159,150
Operating expenses 99,400
Interest expense
3,900
Income before taxes 55,850
Income taxes
22,499
Net income
$33,351
CADET CORPORATION
Balance Sheet
December 31, 2011
Assets Liabilities and Equity
Cash $20,000 Accounts payable $21,500
Short-term investments 8,200 Accrued wages payable 4,400
Accounts receivable, net 29,400 Income taxes payable 3,700
Notes receivable 7,000 Long-term note payable, secured by mortgage on plant assets 67,400
Merchandise inventory 34,150 Common stock 85,000
Prepaid expenses 2,700 Retained earnings
66,750
Plant assets, net
147,300
Total assets
$248,750
Total liabilities and equity
$248,750