Presents a business's comparative balance sheet that's missing the information for owners' equity. Assume that the company didn't issue additional capital stock shares during the year and didn't pay cash dividends to its shareowners during the year. Determine its net income for the year 2007.
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Balance Sheets at Year-Ends 2006 and 2007
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Assets
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2006
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2007
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Changes
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Cash
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$456,000
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$425,000
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($31,000)
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Accounts Receivable
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$386,000
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$340,000
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($46,000)
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Inventory
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$518,000
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$576,000
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$58,000
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Prepaid Expenses
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$46,000
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$52,000
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$6,000
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Current Assets
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$1,406,000
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$1,393,000
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Property, Plant, & Equipment
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$897,000
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$1,060,000
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$163,000
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Accumulated Depreciation
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($257,000)
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($318,000)
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($61,000)
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Cost Less Depreciation
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$640,000
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$742,000
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Total Assets
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$2,046,000
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$2,135,000
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Liabilities & Owners' Equity
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Accounts Payable
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$246,000
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$230,000
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($16,000)
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Accrued Expenses Payable
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$204,000
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$215,000
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$11,000
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Short-term Notes Payable
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$350,000
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$300,000
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($50,000)
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Current Liabilities
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$800,000
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$745,000
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$125,000
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Long-term Notes Payable
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$400,000
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$525,000
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