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CoursHeroTranscribedText: R. Ashburn Inc. R. Ashburn Inc. Income Statement Comparative Balance Sheets For years ended December 31, 2017 and 2018 December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit) $488,000 $439,000 Cash $49.020 $31,500 $17.520 Cost of goods sold (309.000) (253,000) Accounts receivable (net) 38,000 32,000 6,000 Gross margin 179,000 186,000 Inventory 48.000 46,000 2,000 Prepaid expenses 1.000 2,300 -1.300 Depreciation expense 37,000 51,000 Other current assets 1.440 2,200 -760 Other operating 106,000 88,000 Total current assets 137,460 114,000 23.460 expenses Total operating 143,000 139,000 expenses Operating income 36,000 47,000 Long-term Investments 81,000 56,000 25,000 Other income Plant assets 307.000 257,000 50,000 expenses) Less: accumulated Interest expense (5.000) (3.700) depreciation (77.800) (51,000) 26,800 Gain on sale of 5,100 3,600 Total plant assets 229.200 206,000 23,200 investments Loss on sale of plant (2300) (2,800) Total assets 447,660 376,000 71.660 assets Total other income (12.400) (2,900) (expenses Current liabilities: Income before income 33,800 44.100 Accounts payable $29.400 $30,000 $-600 taxes Income taxes expense (10.140) (13.230) Accrued liabilities 4.800 4,000 800 Net income $23.660 $30,870 Income taxes payable 800 3,000 -2,200 Total current liabilities 35,000 37,000 -2,000 R. Ashburn Inc. Long term liabilities: Statement of Retained Earnings Notes Payable 249.000 185,000 64,000 For the year ended December 31, 2018 Total liabilities 284.000 222,000 62,000 2018 2017 Ret. eamings, Jan. 1 $29,000 $0 Stockholders' equity Add: net income 23.660 30.870 Common stock. $5 pa 100,000 100,000 value Deduct: Dividends (14,000) (1870) Additional paid-in capital 25.000 25,000 Increase in retained 9.660 29,000 Retained earnings 38,660 29,000 9.660 earnings Ret. earnings, Dec. 31 $38.660 $29,000 Total stockholders equity 163.660 154,000 9.660 Total liabilities and $447.660 $376,000 $71.660 stockholders' equity Other information: Shares of common 20,000 20,000 stock outstanding Earnings per share $1.18 $1.54 Dividends per share $0.7 $0.09 Market price per share. common stock $14 $12

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