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Refer to the information reported about Satu Company in Problem 12-6B Satu Company, a merchandiser recently completed its 2016 operations For the year All sales are credit sales

Refer to the information reported about Satu Company in Problem 12-6B. Satu Company, a merchandiser, recently completed its 2016 operations. For the year, (1) All sales are credit sales, (2) All credits to Accounts Receivable reflect cash receipts from customers, (3) All purchases of inventory are on credit, (4) All debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are cash expenses, and (6) Any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company s income statement and balance sheets follow. SATU COMPANY Comparative Balance Sheets December 31, 2016 and 2015 SATU COMPANY Income Statement For Year Ended December 31, 2016 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $750,800 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . 269,200 Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481,600 Operating expenses Depreciation expense . . . . . . . . . $ 15,700 Other expenses . . . . . . . . . . . . . . 173,933 . . . 189,633 Income before taxes . . . . . . . . . . . . . . . . . . . . . 291,967 Income taxes expense . . . . . . . . . . . . . . . . . . . . 89,200 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . $202,767 Additional Information on Year 2016 Transactions a. Purchased equipment for $30,250 cash. b. Issued 3,000 shares of common stock for $21 cash per share. c. Declared and paid $60,

May 14 2020 View more View Less

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