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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
Receivables from customers (all considered collectible)
Inventory of merchandise (based on physical count and priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
Salary payable (on December 31, this was owed to an employee who will be paid on January 10)
Total sales revenue
Expenses, including the cost of the merchandise sold (excluding income taxes)
Income tax expense at 30% * pretax income; all paid during the current year
Common stock (December 31)
Dividends declared and paid during the current year
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
3. Prepare a balance sheet at December 31.
HIGHLIGHT CONSTRUCTION COMPANY
Balance Sheet
At December 31, Current Year
Assets
Cash
Receivables from customers
Inventory of merchandise
Equipment
$ 25,600
10,800
81,000
42,000
46,140
2,520
128,400
80,200
?
87,000
10,000
X Answer is not complete.
