Financial Management Solution problem 2-2 A

SHARP Mfg Company
Balance Sheet
December 31, 2003
Assets
Cash                                                                    $  96,000
A/C Recievable                                                     120,000
Inventory                                                               110,000
Total Current Assets                                             326,000

Machinary & Equipment                                     700000
Acc Depreciation                                                (236000)
Net Fixed Assets                                                 4644000
Total Assets                                                          790000

Liabilities & Equity
Current Liability(CL)                                      $     100000
Notes Payable                                                        90,000
A/c Payable                                                          190,000
Total (CL)                                                            350,000

Equity
Common Stock                                                    320,000
Retained Earnings Prior Year                              100,000
=                             Current Yr                              20,000
Total Equity                                                         440,000

Total Liabilities & Owners Equity                  $   790,000

'SHARP Mfg Company
Income Statement
December 31, 2003

Sales                                                                 $  800,000
Cost of Goods Sold                                              500,000
Gross profit                                                         300,000
Operating Expense                                               280,000
Net Income                                                            20,000