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Condensed financial data of Sarasota Inc. follow:
Sarasota Inc.
December 31, 2025
2024
Assets
Cash
$185,840
$111,320
Accounts receivable
201,940
258,750
Inventory
87,400
236,555
Prepaid expenses
65,320
59,800
Long-term investments
317,400
250,700
Plant assets
557,750
Accumulated depreciation
(115,000)
(119,600)
Total
$1,569,750
$1,183,925
Liabilities and Stockholders' Equity
Accounts payable
$234,600
$154,790
Accrued expenses payable
37,950
48,300
Bonds payable
335,800
Common stock
253,000
506,000
Retained earnings
402,500
538,200
Total
$1,569,750
$1,183,925
Sarasota Inc.
Income Statement Data
Sales revenue
$893,458
Less:
Cost of goods sold
$311,558
Operating expenses, including depreciation
28,543
Depreciation expense
106,950
Income tax expense
62,744
Interest expense
10,879
Loss on disposal of plant assets
17,250
$37,924
Net income
$355,534
Additional information:
New plant assets costing $230,000 were purchased for cash during the year.
Old plant assets having an original cost of $132,250 and accumulated depreciation of $111,550 were sold for $3,450 cash.
Bonds payable matured and were paid off at face value for cash.
A cash dividend of $59,869 was declared and paid during the year.
Common stock was issued at par for cash.
SARASOTA INC
