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Financial data for Windsor, Inc. for last year appear below:
Windsor, Inc.
Statements of Financial Position
Beginning
Balance
Ending
Balance
Assets:
Cash
$250,000
$260,000
Accounts receivable
120,000
135,000
Inventory
230,000
205,000
Plant and equipment
(net)
420,000
380,000
Investment in Pine
Company
220,000
250,000
Land (undeveloped)
430,000
430,000
Total assets
$1,670,000
$1,660,000
Liabilities and
stockholders' equity:
Accounts payable
$160,000
$140,000
Long-term debt
800,000
800,000
Stockholders’ equity
710,000
720,000
Total liabilities and
Stockholders’ equity
$1,670,000
$1,660,000
Windsor, Inc.
Income Statement
Sales
$1,750,000
Less operating expenses
1,470,000
Net operating income
280,000
Less interest and taxes:
Interest expense
$96,000
Tax expense
70,000
166,000
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Net income
$114,000
143.
Financial data for Beaker Company for last year appear below:
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Beaker Company
Statements of Financial Position
Beginning
Balance
Ending
Balance
Assets:
Cash
$50,000
$70,000
Accounts receivable
20,000
25,000
Inventory
30,000
35,000
Plant and equipment (net)
120,000
110,000
Investment in Cedar
Company
80,000
100,000
Land (undeveloped)
170,000
170,000
Total assets
$470,000
$510,000
Liabilities and owners'
equity:
Accounts payable
$70,000
$90,000
Long-term debt
250,000
250,000
Owners' equity
150,000
170,000
Total liabilities and owners'
equity
$470,000
$510,000
Beaker Company
Income Statement
Sales
$414,000
Less operating expenses
351,900
Net operating income
62,100
Less interest and taxes:
Interest expense
$30,000
Tax expense
10,000
40,000
Net income
$22,100
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