Question
The income statement of Kodiak Industries Inc. for the currentyear ended June 30 is as follows:
|
Sales |
|
|
$465,560 |
||
|
Cost of merchandisesold |
|
|
264,350 |
||
|
Gross profit |
|
|
$201,210 |
||
|
Operatingexpenses: |
|
|
|
||
|
|
Depreciationexpense |
$35,730 |
|
|
|
|
|
Other operatingexpenses |
94,450 |
|
|
|
|
|
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Total operating expenses |
|
|
130,180 |
|
Income before incometax |
|
|
$71,030 |
||
|
Income tax expense |
|
|
19,700 |
||
|
Net income |
|
|
$51,330 |
||
Changes in the balances of selected accounts from the beginningto the end of the current year are as follows:
|
|
Increase/Decrease* |
|
|
Accounts receivable (net) |
$10,320* |
|
|
Inventories |
3,590 |
|
|
Prepaid expenses |
3,440* |
|
|
Accounts payable (merchandisecreditors) |
7,340* |
|
|
Accrued expenses payable (operatingexpenses) |
1,030 |
|
|
Income tax payable |
2,460* |
|
