Statements of Income and Retained Earnings Year Ended December 31, Year 9 PAGE SAGE Sales $650,000...
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Statements of Income and Retained Earnings Year Ended December 31, Year 9 PAGE SAGE Sales $650,000 $225,000 Cost of goods sold (300,000) (112,500) 350,000 112,500 Depreciation expense 14,000 12,000 Other expenses 231,000 75,500 Income tax expense 42,000 10,000 287,000 97,500 Net income 63,000 15,000 Retained earnings - Beginning 67,000 45,000 Retained earnings - Ending $130,000 $ 60,000 Separate Entity Balance Sheets December 31, Year 9 Assets Cash Accounts receivable (net) Inventory Investment in Sage (cost method) Buildings and equipment Accumulated depreciation Liabilities Current liabilities Deferred tax liability Shareholders' equity PAGE SAGE $ 29,500 $ 10,000 60,000 20,000 45,000 30,000 45,500 90,000 100,000 (20,000) (50,000) $ 250,000 $110,000 $ 40,000 10,000 $ 50,000 $ 25,000 5,000 $ 30,000 Ordinary shares $ 70,000 Retained earnings 130,000 $ 20,000 60,000 200,000 80,000 $ 250,000 $110,000 Statements of Income and Retained Earnings Year Ended December 31, Year 9 PAGE SAGE Sales $650,000 $225,000 Cost of goods sold (300,000) (112,500) 350,000 112,500 Depreciation expense 14,000 12,000 Other expenses 231,000 75,500 Income tax expense 42,000 10,000 287,000 97,500 Net income 63,000 15,000 Retained earnings - Beginning 67,000 45,000 Retained earnings - Ending $130,000 $ 60,000 Separate Entity Balance Sheets December 31, Year 9 Assets Cash Accounts receivable (net) Inventory Investment in Sage (cost method) Buildings and equipment Accumulated depreciation Liabilities Current liabilities Deferred tax liability Shareholders' equity PAGE SAGE $ 29,500 $ 10,000 60,000 20,000 45,000 30,000 45,500 90,000 100,000 (20,000) (50,000) $ 250,000 $110,000 $ 40,000 10,000 $ 50,000 $ 25,000 5,000 $ 30,000 Ordinary shares $ 70,000 Retained earnings 130,000 $ 20,000 60,000 200,000 80,000 $ 250,000 $110,000
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