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Southwest Company

Balance Sheet and Income Statement

For the Years Ending December $31,2020$ and $2019$

$20202019$

Current Assets

Cash $$13,000$ $ $?$

Accounts Receivable $19,00025,000$

Inventory $32,00028,000$

Total Current Assets $64,00062,800$

Fixed Assets $102,00092,000$

Less: Accum. Depreciation $(39,000)(36,000)$

TOTAL ASSETS $$127,000$ $$118,800$

Current Liabilities

Accounts Payable $$15,000$ $$8,000$

Wages Payable $4,0006,000$

Income Tax Payable $7,0006,300$

Total Current Liabilities $26,00020,300$

Long Term Bonds Payable $28,00032,000$

TOTAL LIABILITIES $54,00052,300$

Owner$$s Equity

Common Stock $($$$10$ par$)42,00038,500$

Retained Earnings $31,00028,000$

TOTAL LIAB. & OWNER$$S EQUITY $$127,000$ $$118,800$

INCOME STATEMENT

Sales $($all credit sales$)$ $$133,000$ $$125,000$

Less: COGS $60,20060,200$

Gross Margin $72,80064,800$

Less: Operating Expenses $47,60043,400$

Loss on Sale of Fixed Assets $1,4000$

Net Income Before Taxes $23,80021,400$

Less: Income Taxes $9,8008,400$

NET INCOME $$14,000$ $$13,000$

ADDITIONAL INFORMATION: Sold a fixed asset with an original cost of $$13,000$ and accumulated depreciation of $$10,000$ and purchased a new fixed asset for cash.

Cash Flow from Operations in $2020$ is:

Select one:

a$.$ $$35,400$

b$.$ $$34,700$

c$.$ $$36,100$

d$.$ $$38,200$

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