294 Chapter 5 Problem 21 vears. Assume that you are the new assistant manager and desire to anperat the Inn's financial 1, 20X1, desire togain some insight two ommenced operati assistant manondensed income statements for the ne The Mantle Inn commenced operations on January 1, 20X1, and has beer ins for Inn's financial condition. Balance sheets and condensed income stat two years are as follows: Balance Sheets Mantle Inn December 31, 20X1 and 20X2 20X1 20x2 Assets $ 15,000 50,000 60,000 12,000 137,000 Current Assets: $ 10,000 Cash Marketable Securities Accounts Receivable Inventories 55,000 10,000 75,000 Total Current Assets Property and Equipment: 100,000 1,950,000 240,000 2,290,000 $2,365,000 100,000 1,900,000 200,000 2,200,000 $2,337,000 Land Building (net) Furniture & Equipment (net) Total Property & Equipment Total Assets Liabilities and Owners' Equity Current Liabilities Long-Term Debt $ 55,000 1,300,000 1,355,000 $ 60,000 1,250,000 1,310,000 Total Liabilities Owners' Equity Common Stock Retained Earnings 1,000,000 10,000 1,010,000 1,000,000 27,000 1,027,000 Total Owners' Equity $2,337,000 Total Liabilities and Owners' Equity $2.365,000 Condensed Income Statements Mantle Inn For the years ended December 31, 20X1 and 20x2 20X1 $1,200,000 620,000 580,000 380,000 200,000 185,000 5,000 $ 10,000 20X2 Sales Operated Department Expense Operated Department Income Undistributed Operating Expenses Gross Operating Profit Non-Operating Expenses Income Taxes Net Income $1,400,000 700,000 700,000 400,000 300,000 200,000 45,000 $ 55,000