Thornton Inc. had the following operating balances for 2011:

Additional information for Thornton is as follows:
(a) All purchases of inventory were on account.
(b) Depreciation Expense of $96,000 was recognized during 2011.
(c) Equipment was sold during 2011, and a gain of $3,000 was recognized.
Thornton provides the following cash flow information for 2011:
Cash collected from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 950,000
Cash paid for inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (410,000)
Cash paid for other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (139,000)
Cash from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 401,000
Prepare an income statement for Thornton for2011.

Transcribed Image Text:

December 31, 2011 January 1, 2011 Accounts Payable Inventory Accounts Receivable Prepaid Expenses $58,200 39.400 87,000 12,500 $61,500 37.300 89.100 4.100