Question

Some recent financial statements for Smolira Golf Corp. follow.

  

SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets
Assets									Liabilities and Owners’ Equity
	2017				2018					2017				2018
Current assets									Current liabilities
Cash	$	24,056			$	24,200			Accounts payable	$	23,284			$	27,200
Accounts receivable		12,548				15,300			Notes payable		12,000				10,900
Inventory		25,592				27,200			Other		11,671				15,900
Total	$	62,196			$	66,700			Total	$	46,955			$	54,000
									Long-term debt	$	90,000			$	93,294
									Owners’ equity
									Common stock and paid-in surplus	$	42,000			$	42,000
									Accumulated retained earnings		208,936				242,706
Fixed assets
Net plant and equipment	$	325,695			$	365,300			Total	$	250,936			$	284,706
Total assets	$	387,891			$	432,000			Total liabilities and owners’ equity	$	387,891			$	432,000

SMOLIRA GOLF CORP. 2018 Income Statement
Sales					$	336,329
Cost of goods sold						231,000
Depreciation						21,600
Earnings before interest and taxes					$	83,729
Interest paid						14,400
Taxable income					$	69,329
Taxes (21%)						14,559
Net income					$	54,770
Dividends	$	21,000
Retained earnings		33,770

  

Answer 1