Kinder Care Company

Balance Sheet

December 31

2015

2014

Cash

                135,900

             111,200

Accounts receivable (net)

                  38,300

               20,300

Inventory

                  35,000

               26,000

Long-term investments

                            -  

               20,000

Property, plant & equipment

                216,500

             150,000

Accumulated depreciation

                (57,700)

             (25,000)

                368,000

             302,500

Accounts payable

                  17,000

               35,500

Accrued liabilities

                  21,000

               27,000

Long-term notes payable

                  70,000

               50,000

Common stock

                185,000

             145,000

Retained earnings

                  75,000

               45,000

                368,000

             302,500

Sales Revenue........................................................

$        512,000

Cost of goods sold................................................   

291,000

Gross margin .......................                                    

221,000

Operating expenses................................................

91,500

Pre-tax operating income                                        

129,500

Gain on sale of investments                                     

15,000

Pre-tax income

144,500

Tax                                                                                       

42,000

Net income...............................................................                           

$         102,500

Additional data:

1

Depreciation on plant assets for the year, $32,700.

2

Sold the long-term investments for $35,000.

3

Purchased machinery costing $66,500, issued note for $20,000 and paid remainder in cash.

4

Paid a $40,000 long-term note payable by issuing common stock.

5

Issued additional long-term notes payable during the year.