Accounting Analysis

Fundamentals of Accounting

Fundamentals of Accounting

Orange CompanyIncome StatementFor the Years Ended December 31

2013

2012

Net Sales (all on account)

$600,000

$520,000

Expenses:

Cost of Goods Sold

$415,000

$354,000

Selling and Administrative

$120,800

$114,800

Interest Expense

$7,800

$6,000

Income Tax Expense

$18,000

$14,000

Total Expenses

$561,600

$488,800

Net Income

$38,400

$31,400

Additional Data: The common stock recently sold at $19.50 per share.

Orange CompanyBalance SheetsDecember 31

2013

2012

Assets

Current Assets

Cash

$21,000

$18,000

Short-Term Investments

$18,000

$15,000

Accounts Receivable

$86,000

$74,000

Inventory

$90,000

$70,000

Total Current Assets

$215,000

$177,000

Plant Assets

$423,000

$383,000

Total Assets

$638,000

$560,000

Liabilities and Stockholder's Equity

Current Liabilities

Accounts Payable

$122,000

$110,000

Income Taxes Payable

$23,000

$20,000

Total Current Liabilities

$145,000

$130,000

Long-term Liabilities

Bonds Payable

$120,000

$80,000

Total Liabilities

$265,000

$210,000

Stockholder's Equity

Common Stock ($5 par ...