Problem: Condensed financial data of Shake It Up Inc. for 2010 and 2009 are presented below.
Shake It Up Inc.
Comparative Balance Sheet
As of December 31, 2010 and 2009
|
|
2010 |
|
2009 |
| Cash |
|
1790 |
|
1165 |
| Receivables |
|
1712 |
|
1288 |
| Inventory |
|
1621 |
|
1912 |
| Plant assets |
|
1880 |
|
1675 |
| Accumulated depreciation |
|
-1180 |
|
-1130 |
| Long - term investments (held - to - maturity) |
|
1360 |
|
1460 |
|
|
7183 |
|
6370 |
|
|
|
|
|
| Accounts payable |
|
1182 |
|
990 |
| Accrued liabilities |
|
200 |
|
240 |
| Bonds payable |
|
1410 |
|
1575 |
| Capital stock |
|
1895 |
|
1665 |
| Retained earnings |
|
2496 |
|
1900 |
|
|
7183 |
|
6370 |
Shake It Up Inc.
Income Statement
For the Year Ended December 31, 2010
| Sales |
6850 |
| Cost of goods sold |
4565 |
| Gross margin |
2285 |
| Selling and administrative expenses |
925 |
| Income from operations |
1360 |
| Other revenues and gains |
|
| Gain on sale of investments |
85 |
| Income before tax |
1445 |
| Income tax expense |
578 |
| Net income |
867 |
| Cash dividends |
271 |
| Income retained in business |
596 |
Additional Information: During the year, $71 of common stock was issued in exchange for plant assets. No plant assets were sold in 2010