Lan Services Incorporated

Income Statement
For the Year Ended December 31, 2020
Sales Revenue 507,000
Cost of Goods Sold 150,000
Operating expenses (excluding depreciation) 111,000
Depreciation expense 9,000
Loss on disposal fo plant assets 3,000
Interest expense 42,000 315,000
Income before income taxes 192,000
Income tax expense 47,000
Net income 145,000
 Lan Services Incorporated
Comparative Statement of Financial Position
December 31, 2020
Change in Account
Balance
Assets 2020 2019 Increase/Decrease
Current assets
Cash 55,000 33,000 22,000
Accounts receivable 20,000 30,000 10,000
Inventory 15,000 10,000 5,000
Prepaid expenses 5,000 1,000 4,000
Property, plant, and equipment
Land 130,000 20,000 110,000
Buildings 160,000 40,000 120,000
Accumulated depreciation - buildings - 11,000 - 5,000 6,000
Equipment 27,000 10,000 17,000
Accumulated depreciation - equipment - 30,000 - 1,000 2,000
Total assets 398,000 138,000

Liabilities and Stockholder's Equity

Current liabilities
Acconts payable 28,000 12,000 16,000
Income taxes payable 6,000 8,000 2,000
Long-term liabilities
Bonds payable 130,000 20,000 110,000
Stockholder's equity
Common stock 70,000 50,000 20,000
Retained earnings 154,000 48,000 116,000
Total liabilities and stockholders equity 398,000 138,000
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