BBB COMPANY
Balance Sheet
December 31, 2002 and 2001

2002

2003

Assets

Cash

$ 4,500

$ 4,000

Marketable securities

2,500

2,000

Accounts receivable

6,800

7,200

Inventories

7,500

8,000

Total current assets

21,300

21,200

Land

11,000

12,000

Equipment

24,000

20,500

Accumulated depreciation—equipment

(3,800)

(3,000)

Building

70,000

70,000

Accumulated depreciation—building

(14,000)

(12,000)

Total assets

$108,500

$108,700

Liabilities and Stockholders’ Equity

Accounts payable

$ 7,800

$ 7,000

Wages payable

1,050

1,000

Taxes payable

500

1,500

Total current liabilities

9,350

9,500

Bonds payable

30,000

30,000

Common stock, $10 par

32,000

30,000

Additional paid-in capital

21,000

19,200

Retained earnings

16,150

20,000

Total liabilities and stockholders’ equity

$108,500

$108,700

BBB COMPANY
Income Statement
For Year Ended December 31, 2002

Sales

$38,000

Operating expenses:

Depreciation expense

$ 2,800

Other operating expenses

35,000

37,800

Operating income

200

Gain on sale of land

800

Income before tax expense

1,000

Tax expense

500

Net income

$ 500

Supplemental information:

Dividends declared and paid

$ 4,350

Land sold for cash

1,800

Equipment purchased for cash

3,500

Common stock sold for cash

3,800