Question

Some recent financial statements for Smolira Golf Corp. follow SMOLIRA GOLF CORP 2014 and 2015 Balance Sheets Assets Liabilities and Owners' Equity 2014 2015 2014 Current assets Current liabilities Cash Accounts receivable Inventory $ 24,236 14,348 27,892 $ 26,000 17,100 29,000 Accounts payable Notes payable Other $ 25,084 19,000 13,471 $ 29,000 12,700 18,300 Total $ 66,476 $ 72,100 Total 57,555 $ 60,000 $ 88,000 $ 99,000 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings 45,000 219,616 $45,000 233,000 Fixed assets Net plant and equipment$343,695 $364,900 Total $264,616 $278,000 Total assets $410,171 $437,000 Total liabilities and owners' equity $410,171 $437,000 SMOLIRA GOLF CORP 2015 Income Statement Sales Cost of goods sold Depreciation $392,640 257,000 48,800 Earnings before interest and taxes Interest paid 86,840 16,200 Taxable income Taxes (40%) $ 70,640 28,256 Net income $ 42,384 Dividends Retained earnings $29,000 13,384