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Financial information for Messersmith Company is presented below MESSERSMITH COMPANY Balance Sheets December 31 2017 2016 $107,250 66,000 132,000 222,750 37,950 214,500 288,750 Cash Short-term investments 115,500 Accounts recelvable (net) Inventory Prepaid expenses Land Building and equipment (net) 85,800 161,700 206,250 47,850 214,500 297,000266, $1,128,600 1,069,200 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2020 Common stock, $10 par Retained earnings $165,000 $165,000 69,300 66,000 247,500 330,000 191,400 $1,128,600 $1,069,200 79,200 82,500 247,500 330,000 224,400 MESSERSMITH COMPANY For the Years Ended December 31 2017 2016 Net sales Cost of goods sold Gross profit Operating expenses Net income $1,402,500 1,023,000 379,500 308,550 $ 70,950 $1,303,500 948,750 354,750 285,450 $ 69,300 Additional information: 1. 2. 3. 4. Inventory at the beginning of 2016 was $194,700. Total assets at the beginning of 2016 were $1,039,500. No common stock transactions occurred during 2016 or 2017 All sales were on account. Accounts receivable, net at the beginning of 2016 were $145,200. Notes payable are classified as current liabilities 5. Financial information for Messersmith Company is presented below MESSERSMITH COMPANY Balance Sheets December 31 2017 2016 $107,250 66,000 132,000 222,750 37,950 214,500 288,750 Cash Short-term investments 115,500 Accounts recelvable (net) Inventory Prepaid expenses Land Building and equipment (net) 85,800 161,700 206,250 47,850 214,500 297,000266, $1,128,600 1,069,200 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2020 Common stock, $10 par Retained earnings $165,000 $165,000 69,300 66,000 247,500 330,000 191,400 $1,128,600 $1,069,200 79,200 82,500 247,500 330,000 224,400 MESSERSMITH COMPANY For the Years Ended December 31 2017 2016 Net sales Cost of goods sold Gross profit Operating expenses Net income $1,402,500 1,023,000 379,500 308,550 $ 70,950 $1,303,500 948,750 354,750 285,450 $ 69,300 Additional information: 1. 2. 3. 4. Inventory at the beginning of 2016 was $194,700. Total assets at the beginning of 2016 were $1,039,500. No common stock transactions occurred during 2016 or 2017 All sales were on account. Accounts receivable, net at the beginning of 2016 were $145,200. Notes payable are classified as current liabilities 5

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