Activity 1.5.5. Solving the Problem

Presented below is the Comparative Financial Statements of Tan General Merchandise for the year 2018 and 2019:

TAN GENERAL MERCHANDISE Comparative Statement of Financial Position For the Year 2018 & 2019 2018 2019 ASSETS Cash 87,400.00 110,000.00 Accounts Receivable 69,920.00 90,000.00 Inventory 218,500.00 129,000.00 Prepaid Rent 4.370.00 12.000.00 Total Current Assets 380,190.00 341,000.00 Land 493,810.00 550,000.00 Building 500.000.00 600,000.00 Total Noncurrent Assets 993.810.00 1. 150.000.00 TOTAL ASSETS 1,374,000.00 1,491,000.00 LIABILITIES Accounts Payable 250,000.00 200,000.00 Notes payable 150.000.00 300.000.00 Total Current Liabilities 400,000.00 500,000.00 Mortgage Payable 160,000.00 180,000.00 Loan Payable 150.000.00 200.000.00 Total Noncurrent Liabilities 310.000.00 380.000.00 TOTAL LIABILITIES 710,000.00 880,000.00 OWNER'S EQUITY Tan, Capital 664.000.00 611.000.00 Total Liabilities & Owner's Equity 1,374,000.00 1,491,000.00TAN GENERAL MERCHANDISE Comparative Statement of Comprehensive Income For the Year 2018 & 2019 2018 2019 Net Sales 686,000.00 810,000.00 Cost of Goods Sold 348.300.00 301.750.00 Gross Profit 337,700.00 508,250.00 Operating Expenses 205.800.00 234.900.00 Earnings Before Interest and Taxes 131.900.00 273.350.00 Interest Expense 17.150.00 40.500.00 Net Income Before Tax 114.750.00 232.850.00 Income Tax 34.425.00 69.855.00 Net Income After Tax 80.325.00 162.995.00