Problem 14-3A

Condensed balance sheet and income statement data for Clarence Corporation appear below.

Clarence Corporation Balance Sheets December 31
		2014		2013		2012
Cash		$ 25,000		$ 20,000		$ 18,000
Receivables (net)		50,000		45,000		48,000
Other current assets		90,000		95,000		64,000
Investments		75,000		70,000		45,000
Plant and equipment (net)		400,000		370,000		358,000
		$640,000		$600,000		$533,000
Current liabilities		$70,000		$75,000		$70,000
Long-term debt		80,000		85,000		50,000
Common stock, $10 par		345,000		315,000		300,000
Retained earnings		145,000		125,000		113,000
		$640,000		$600,000		$533,000

Clarence Corporation Income Statement For the Years Ended December 31
		2014		2013
Sales revenue		$740,000		$700,000
Less: Sales returns and allowances		40,000		60,000
Net sales		700,000		640,000
Cost of goods sold		420,000		400,000
Gross profit		280,000		240,000
Operating expenses (including income taxes)		238,000		208,000
Net income		$ 42,000		$ 32,000

Additional information:

1.

The market price of Clarence