Assume that you are the president of Highlight Construction
Company. At the end of the first year of operations (December 31), the
following financial data for the company are available:
Cash $ 26,400
Receivables from customers (all considered collectible) 12,000
Inventory of merchandise (based on physical count and priced
at cost) 78,000
Equipment owned, at cost less used portion 41,000
Accounts payable owed to suppliers 48,140
Salary payable (on December 31, this was owed to an employee
who will be paid on January 10)
2,900
Total sales revenue
131,000
Expenses, including the cost of the merchandise sold
(excluding income taxes) 81,200
Income taxes expense at 30% × pretax income; all paid during
the current year ?
Common stock (December 31)
82,900
Dividends declared and paid during the current year 11,400
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