Text: December 31, 20X2 and 20X1
Browne Corporation
20X2
Income Statement
Assets
20X1
Cash
$17,500 $20,000
for the year ended December 31, 20X2 and 20X1
$30,500 $32,000
20X2
20X1
Accounts Receivable
Inventory
$53,000
$50,000
Net Sales
$650,000 $580,000
Plant Assets
$135,000 $105,000
Cost of Goods Sold
$300,000 $280,000
Less: Accumulated Depreciation
($30,000) ($25,000)
Gross Profit
$350,000 $300,000
Total Assets
$206,000 $182,000
Operating Expenses
$180,000 $170,000
Liabilities & Stockholders Equity
Operating Income
$170,000 $130,000
Accounts Payable
$40,000 $30,000
Interest Expense
$105,000 $104,000
Notes Payable - short term
$12,500
$12,000
Income Before Income Tax
$65,000
$26,000
Bonds Payable
$65,500
$56,000
Income Tax
$19,500
$7,800
Common Stock
$60,000
$55,000
Net Income
$45,500 $18,200
Retained Earnings
$28,000 $29,000
Question 6
1pts
Total Liabilities & Stockholders Equity
$206,000 $182,000
Refer to Browne Corporation. What is the working capital for 20X2 and 20X1, respectively?
$17,000 and $4,000
$48,500 and $60,000
$153,500 and $140,000
$88,000 and $84,000
