Hartzog Corporation's most recent balance sheet and income statement appear below:
Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars) |
|
Year 2 |
Year 1 |
| Assets |
|
|
| Current assets: |
|
|
| Cash |
$ 270 |
$ 240 |
| Accounts receivable |
350 |
330 |
| Inventory |
220 |
230 |
| Prepaid expenses |
50
|
50
|
| Total current assets |
890 |
850 |
| Plant and equipment, net |
800
|
810
|
| Total assets |
$1,690
|
$1,660
|
| |
|
|
| Liabilities and Stockholders' Equity |
|
|
| Current liabilities: |
|
|
| Accounts payable |
$ 290 |
$ 260 |
| Accrued liabilities |
30 |
30 |
| Notes payable, short term |
90
|
90
|
| Total current liabilities |
410 |
380 |
| Bond payable |
250
|
270
|
| Total liabilities |
660
|
650
|
| Stockholders' equity: |
|
|
| Preferred stock, $100 par value, 3.0% |
100 |
100 |
| Common stock, $2 par value |
400 |
400 |
| Additional paid-in-capital--common stock |
280 |
280 |
| Retained earnings |
250
|
230
|
| Total stockholders' equity |
1,030
|
1,010
|
| Total liabilities & stockholders' equity |
$1,690
|
$1,660
|
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars) |
| Sales (all on account) |
$1,440 |
| Cost of goods sold |
790
|
| Gross margin |
650 |
| Selling and administrative expense |
526
|
| Net operating income |
124 |
| Interest expense |
34
|
| Net income before taxes |
90
|
| Income taxes (30%) |
27
|
| Net income |
$ 63
|
Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $3 thousand. The market price of common stock at the end of Year 2 was $7.13 per share.