Problem $2$: Springfield Corp.

Use the following information to answer Parts A and B for Springfleld Corp

The following information is provided from the $2025$ financial statements of Springfield Corp.:

For the year ending December $31,2025$

$\backslash$table$[[$Net sales $($all on credit$),$$ $962,000],[$Cost of goods sold,$495,000],[$Gross profit on sales,$467,000],[$Operating expenses,$292\mathrm{.}000],[$Income from operations,$175,000],[$Interest expense,$20\mathrm{.}400],[$Income before taxes,$154,600],[$Income taxes,$58\mathrm{.}200],[$Profit$,$$ $96\mathrm{.}400]]$

Comparative Balance Sheet

As at December $31$

Cash

Accounts receivable, net

Merchandise inventory

Prepaid expenses

Plant assets, net

Total assets

Accounts payable

Interest payable

Long$-$term note payable, secured by mortgage

Common shares$*$

Retained earnings

$\backslash$table$[[2025,2024],[\backslash$table$[[$s$],[39,400]],\backslash$table$[[$$