Professional Documents
Culture Documents
Chapter 11
Current Liabilities and Payroll Accounting
QUESTIONS
1.
The three questions are: (1) Who must be paid? (2) When is payment due? (3) How
much is to be paid?
2.
A current liability is expected to be paid within one year or the companys operating
cycle, whichever is longer. Any liability that is not current is considered to be long
term.
3.
4.
The amount of the sale for the item only is $950 ($988/1.04).
5.
The combined Social Security tax rate (assuming the maximum wage amount is not
yet reached) is 12.4% (6.2% + 6.2%). The maximum level of earnings [wage base on
which taxes are due] for 2010 is $106,800.
6.
The Medicare tax rate is 1.45%. This rate is applied to all wages earned by an
employeeno maximum limit exists.
7.
An employees gross earnings along with the number of withholding allowances that
an employee claims, as well as whether they are married or single, determine the
amount deducted for federal income taxes.
8.
The employee is responsible for federal income taxes, state income taxes, local
income taxes (if any), and the employee portion of the FICA taxes. The employer is
responsible for both federal and state unemployment taxes and the employer
portion of the FICA taxes.
9.
10. The obligation to correct or replace defective products (or services) is created when
the products are sold with the warranties. Even though the seller does not know
with certainty when the obligation will be paid, to whom it will be paid, or the amount
to be paid, past experience shows that some amount will probably be paid. If the
seller can reasonably estimate that amount, the warranty liability must be reported
on the balance sheet.
11-1
11. There are no conditions in which a probable loss tied to a future event can create a
liability, regardless of its probability. A liability is an obligation created by a past
event, not by a future event. If a disaster occurs, the company must report the loss
in the period when it occurs.
12.A A wage bracket withholding table shows for a pay period of a given length (weekly,
biweekly, semimonthly, monthly), the amounts of federal income taxes to be
withheld from the pay of an employee, at varying amounts of gross pay and varying
numbers of withholding allowances.
13.A Single employee earning $725 with two allowances has $76 taxes withheld.
Single employee earning $625 with no allowances has $81 taxes withheld.
14. At February 27, 2010, Research In Motion reports Deferred revenue in the amount
of $67,573 ($ in thousands).
15. At September 26, 2009, Apple reports Accounts payable of $5,601 million.
16. At December 31, 2009, Nokia reports six current liabilities: Current portion of longterm loans; Short-term borrowings; Other financial liabilities; Accounts payable;
Accrued expenses; and Provisions.
17. Palms current liabilities include one income-tax-related liability titled Income taxes
payable. This account reflects taxes that must be paid to the government in the
short term.
Instructor note: Palm also has one noncurrent income-tax-related account on its
balance sheet. This account is titled Non-current tax liabilities.
QUICK STUDIES
Quick Study 11-1 (5 minutes)
Items 1, 3, 5, 6 are current liabilities for this company.
Quick Study 11-2 (10 minutes)
Sept. 30
Cash ..........................................................................5,200
Sales ...................................................................
Sales Taxes Payable .........................................
5,000
200
Sept. 30
2,900
Oct. 15
11-2
200
Cash ..........................................................................
5,500,000
Unearned Ticket Revenue .................................
5,500,000
Nov. 8
1,375,000
2. 2011
Dec.31 Interest Expense ...................................................... 1,800
Interest Payable ................................................
1,800
3. 2012
Feb. 5 Interest Expense* .................................................... 1,200
Interest Payable ....................................................... 1,800
Notes Payable ..........................................................150,000
Cash ....................................................................
To record payment of note plus interest
*(8% x $150,000 x 36/360).
11-3
153,000
868
203
2,600
309
120
9,900
Mar. 31
July 24
35
35
11-4
10,000
307.69
307.69
$2,044,000
$350,000
= 5.8 times
$735.00
$45.57
10.66
93.00
7.35
156.58
$578.42
22,000
8,000
11-5
EXERCISES
Exercise 11-1 (10 minutes)
1.
3.
5.
7.
9.
2.
4.
6.
8.
10.
1.
2.
40,000
40,000
1.
2.
No adjusting entry is required since it is not probable that the supplier will
default on the debt. The guarantor, Moor Company, should describe the
guarantee in its financial statement notes as a contingent liability.
2a.
May 15
11-6
94,000
95,880
2.
3.
4a.
2011
Nov. 1
Cash ..........................................................................150,000
Notes Payable ....................................................
150,000
Borrowed cash by issuing an interest-bearing note.
4b.
2011
Dec. 31
2,250
4c.
2012
Jan. 30
11-7
Rate
Tax
Explanation
a.
FICA--Social Security ........... $ 800
6.20%
FICAMedicare.....................
800
1.45
FUTA..........................................
600
0.80
SUTA..........................................
600
2.90
b.
FICA--Social Security ........... $2,100
FICAMedicare.....................
2,100
1.45
FUTA..........................................
0.80
SUTA..........................................
2.90
c.
FICA--Social Security ........... $6,300
6.20%
FICAMedicare.....................
8,000
1.45
FUTA..........................................
0.80
SUTA..........................................
2.90
11-8
49.60
11.60
135.00
603.80
49.60
11.60
4.80
17.40
B
= 0.03 ($1,000,000 B)
B
= $30,000 0.03B
1.03B = $30,000
B
= $29,126 (rounded to nearest dollar)
2.
2011
Dec. 31
29,126
29,126
3.
2012
Jan. 19
29,126
29,126
1.
3,600
2.
11-9
2,400
5,500
5,500
3,800
3,800
(b)
Dec. 31 Warranty Expense ...................................................
Estimated Warranty Liability ............................
220
220
2012
(c)
Nov. 22 Estimated Warranty Liability ..................................
Repair Parts Inventory ......................................
To record cost of warranty repairs.
11-10
199
199
(b)
(c)
(d)
(e)
(f)
$205,000
$218,000
$407,000
$121,000 $ 8,000
$ 15,000
8,000
$ 12,000
$ 12,000 $12,000
27.25
33.92
Denominator
Interest expense ......$ 48,000
Ratio......................
4.65
13.67
10.08
0.67
Analysis: Company (d) has the strongest ability to pay interest expense as
it comes due as evidenced by the companys times interest earned
(coverage) ratio of 33.92 times.
11-11
$480.00
144.00
624.00
108.74
$515.26
2.
2011
(a)
Dec. 31 Income Tax Expense ................................................ 5,460
Income Taxes Payable .......................................
5,460
2012
Jan. 20
(b)
Income Taxes Payable ............................................. 29,100
Cash .....................................................................
29,100
6,201
6,201
2.
5,220
3.
11-12
5,220
11,160
2,610
45,000
10,000
2,800
1,600
1,000
105,830
(2)
July 31 Salaries Payable .......................................................
105,830
Cash ....................................................................
105,830
(3)
July 31 Payroll Taxes Expense ............................................23,470
FICASocial Sec. Taxes Payable ....................
FICAMedicare Taxes Payable ........................
State Unemployment Taxes Payable................
Federal Unemployment Taxes Payable ...........
Employee Medical Insurance Payable* ............
Employee Life Insurance Payable** .................
11,160
2,610
2,700
400
4,200
2,400
(4)
July 31 FICASocial Security Taxes Payable....................22,320
FICAMedicare Taxes Payable .............................. 5,220
Employee Fed. Income Taxes Payable. .................45,000
Employee State Income Taxes Payable. ................10,000
Employee Medical Insurance Payable ................... 7,000
Employee Life Insurance Payable .......................... 4,000
Employee Union Dues Payable ............................... 1,000
State Unemployment Taxes Payable ...................... 2,700
Federal Unemployment Taxes Payable.................. 400
Cash ....................................................................
To record payment of FICA, income taxes, SUTA,
FUTA, union dues, and insurance premiums.
11-13
97,640
PROBLEM SET A
Problem 11-1A (45 minutes)
Frier
1.
2.
3.
4.
Com. Bank
Maturity dates
Date of the note .............................. May 19
Term of the note (in days) .............
90
Maturity date...................................Aug. 17
July 8
120
Nov. 5
$60,000
10%
120/360
$ 2,000
11-14
UMB
Nov. 28
60
Jan. 27
$21,000
8%
60/360
$ 280
280
33/60
$ 154
280
27/60
$ 126
38,500
8,500
30,000
60,000
30,675
62,000
21,000
154
154
2011
Jan. 27 Interest Expense ......................................................
126
Notes PayableUMB Bank .................................... 21,000
Interest Payable ......................................................
154
Cash ....................................................................
Paid note with interest.
11-15
21,280
6,000
6,000
1,350
1,350
420
420
270
270
16,800
3,780
3,780
540
540
11-16
1,176
1,176
10,400
2,340
2,340
900
900
728
728
2.
3.
4.
5.
11-17
credit
credit
debit
credit
credit
credit
debit
credit
Ace Co.
=
$100,000
$30,000
= 3.33
$200,000
$130,000
= 1.54
Interest expense
2.
Deuce Co.
Income before interest & taxes
Interest expense
3.
Ace Co.
$650,000
520,000
130,000
30,000
Deuce Co.
$650,000
390,000
260,000
130,000
Net income...................................
$100,000
$130,000
43%
86%
4.
5.
Ace Co.
$750,000
600,000
150,000
30,000
$120,000
Deuce Co.
$750,000
450,000
300,000
130,000
$170,000
71%
143%
Ace Co.
$900,000
720,000
180,000
30,000
$150,000
Deuce Co.
$900,000
540,000
360,000
130,000
$230,000
114%
229%
11-18
7.
-14%
8.
-29%
-57%
9.
-29%
-57%
-114%
The higher fixed cost strategy (having more fixed interest expense) of
Deuce Co. accentuates the effects of increases and decreases in sales.
That is, increases in sales produce greater increases in net income and
decreases in sales produce greater decreases in net income. The
higher fixed cost strategy of Deuce Co. is indicated by a lower value of
the times interest earned ratio.
The higher fixed cost strategy works fine if the sales level
increases. Deuce Co. enjoys greater percent increases in its net income
because it has made this choice (see parts 3, 4, and 5).
The lower fixed cost strategy protects the company if the sales
level decreases. Ace Co. experiences smaller percent decreases in its
net income because it has made this choice (see parts 6, 7, and 8).
11-19
Ted
Kate
Chas
$106,800 $106,800
105,300
36,650
$ 1,500 $ 70,150
$106,800 $106,800
6,750
1,050
$100,050 $105,750
2,000 $
900
1,500
6.20%
$
900
6.20%
93.00 $
55.80
450 $
450
6.20%
27.90
Total
400
400
6.20%
$ 24.80 $201.50
Ted
Kate
Chas
$ 2,000
1.45%
$ 900
1.45%
$ 450
1.45%
$ 400
1.45%
$ 29.00
$ 13.05
$ 6.53
$ 5.80
Ted
Kate
Chas
$ 55.80
$ 27.90
$ 24.80
Kate
Chas
Total
$ 54.38
$ 93.00
Total
$201.50
$ 29.00
Ted
$ 13.05
11-20
$ 6.53
$ 5.80
Total
$ 54.38
Dale
$ 7,000
105,300
0
Ted
$ 7,000
36,650
0
Kate
$ 7,000
6,750
250
Chas
$ 7,000
1,050
5,950
$ 2,000
0
0.8%
0.00
900
450
Total
400
0
0.8%
$ 0.00
250
0.8%
$ 2.00
400
0.8%
$ 3.20
Ted
$
0
2.15%
$ 0.00
Kate
$ 250
2.15%
$ 5.38
Chas
$ 400
2.15%
$ 8.60
10.60
5.20
0
2.15%
$ 0.00
$ 13.98
Chas
$400.00
Total
$3,750.00
(24.80)
(5.80)
(36.00)
(16.00)
$317.40
(201.50)
(54.38)
(441.00)
(64.00)
$2,989.12
11-21
Total
Total
$3,750.00
201.50
54.38
5.20
13.98
64.00
300.00
$4,389.06
2,746.60
642.35
6,340.00
670.00
420.00
33,481.05
Part 2
Jan. 8
11-22
2,746.60
642.35
1,772.00
354.40
7,878
1,612
377
3,900
20,111
20,111
11-23
1,612
377
720
144
7,878
2,800
11-24
560
PROBLEM SET B
Problem 11-1B (45 minutes)
Quinn
Products
1.
July 15
120
Nov. 12
Dec. 6
45
Jan. 20
$ 9,000
10%
120/360
$ 300
$16,000
9%
45/360
$ 180
3.
City
Bank
Maturity dates
Date of the note ................................
May 23
Term of the note (in days) ...............
60
Maturity date .....................................
July 22
2.
Blackhawk
Bank
4.
11-25
4,000
4,000
May 23
4,000
400
3,600
July 15
Cash ..........................................................................
Notes PayableBlackhawk Bank ....................
9,000
9,000
22
90
3,600
3,690
Nov. 12
300
9,000
9,300
Dec. 6
16,000
31
100
100
2011
Jan. 20 Interest Expense ......................................................
80
Interest Payable .......................................................
100
Notes PayableCity Bank ...................................... 16,000
Cash ....................................................................
Paid note with interest.
11-26
16,180
1,750
1,750
700
700
175
175
84
84
18 Cash ..........................................................................
Sales ...................................................................
5,250
5,250
2,100
2,100
238
238
11-27
525
525
2,100
2,100
840
840
532
532
210
210
2.
3.
4.
credit
credit
debit
credit
credit
credit
debit
credit
5.
11-28
Virgo Co.
Income before interest & taxes
Interest expense
2.
Interest expense
4.
5.
$60,000
$45,000
= 1.33
$30,000
$15,000
= 2.00
Zodiac Co.
Income before interest & taxes
3.
Virgo Co.
$132,000
66,000
66,000
45,000
$ 21,000
Zodiac Co.
$132,000
99,000
33,000
15,000
$ 18,000
40%
20%
Virgo Co.
$168,000
84,000
84,000
45,000
$ 39,000
Zodiac Co.
$168,000
126,000
42,000
15,000
$ 27,000
160%
80%
Virgo Co.
$228,000
114,000
114,000
45,000
$ 69,000
Zodiac Co.
$228,000
171,000
57,000
15,000
$ 42,000
360%
180%
11-29
7.
-80%
8.
-200%
-100%
9.
-40%
-320%
-160%
The higher fixed cost strategy (having more fixed interest expense) of
Virgo Co. accentuates the effects of increases and decreases in sales.
That is, increases in sales produce greater increases in net income and
decreases in sales produce greater decreases in net income. The
higher fixed cost strategy of Virgo Co. is indicated by a lower value of
the times interest earned ratio.
The higher fixed cost strategy works fine if the sales level increases.
Virgo Co. enjoys substantially greater increases in its net income
because it has made this choice (see parts 3, 4, and 5).
The lower fixed cost strategy protects the company if the sales level
decreases. Zodiac Co. experiences much smaller decreases in its net
income because it has made this choice (see parts 6, 7, and 8).
11-30
Eve
Hong
Juan
$106,800
$106,800
104,300
36,650
$ 2,500
$ 70,150
$100,150 $ 84,600
$ 2,500
$ 1,515
475 $
600
2,500
$ 1,515
475 $
600
6.20%
6.20%
$ 155.00
$ 93.93
Total
$106,800 $106,800
6,650
22,200
6.20%
$
6.20%
Eve
Hong
$ 2,500
$ 1,515
1.45%
1.45%
1.45%
$ 36.25
$ 21.97
$ 6.89
475
Juan
$
Total
600
1.45%
8.70
$ 73.81
Alli
Eve
Hong
Juan
Total
$ 155.00
$ 93.93
$ 29.45
$ 37.20
$315.58
Total
Alli
Eve
Hong
Juan
$ 36.25
$ 21.97
$ 6.89
$ 8.70
11-31
$ 73.81
Problem 11-4B(Concluded)
5. Employers FUTA taxes
Alli
Maximum base ............ $ 7,000
Earned through 9/23 ... 104,300
Amount subject to tax . $
0
Eve
$ 7,000
36,650
$
0
Hong
$ 7,000
6,650
$ 350
Juan
$ 7,000
22,200
$
0
2,500
1,515
475
0
0.8%
0.00
0
0.8%
0.00
350
0.8%
$ 2.80
0
0.8%
$ 0.00
Hong
$ 350
1.75%
$ 6.13
Juan
$
0
1.75%
$ 0.00
Hong
$475.00
Juan
$600.00
Total
$5,090.00
(29.45)
(6.89)
(52.00)
(22.00)
$364.66
(37.20)
(315.58)
(8.70)
(73.81)
(48.00)
(480.00)
(22.00)
(88.00)
$484.10 $4,132.61
Total
600
2.80
Eve
$
0
1.75%
$
0.00
Total
6.13
Total
$5,090.00
315.58
73.81
2.80
6.13
88.00
254.50
$5,830.82
7,068
1,653
17,250
2,320
275
85,434
Part 2
Jan. 8 Payroll Taxes Expense ............................................13,509
FICASocial Security Taxes Payable .............
FICAMedicare Taxes Payable ........................
State Unemployment Taxes Payable* ..............
Federal Unemployment Taxes Payable** ...........
To record employer payroll taxes.
* $114,000 x .034 = $3,876
**$114,000 x .008 = $912
11-33
7,068
1,653
3,876
912
744
174
900
1,818
372
87
900
4,641
4,641
11-34
699
372
87
200
40
744
174
900
1,818
680
680
11-35
136
136
Serial Problem
SP 11
$ 764.50
2. 2012
Feb. 26 Wages Expense .......................................................
1,000.00
FICASocial Security Taxes Payable .............
FICAMedicare Taxes Payable .......................
Employee Federal Income Taxes Payable ......
Cash ....................................................................
62.00
14.50
159.00
764.50
3. 2012
Feb. 26 Payroll Taxes Expense ............................................ 124.50
FICASocial Sec. Taxes Payable ....................
FICAMedicare Taxes Payable .......................
State Unemployment Taxes Payable*..............
Federal Unemployment Taxes Payable**...........
62.00
14.50
40.00
8.00
4. 2012
Mar. 25 Accounts Receivable Wildcat Services .............. 2,912
Sales ...................................................................
Sales Taxes Payable .........................................
2,800
112
11-36
2,002
Comprehensive Problem
Bug-Off Exterminators (100 minutes)
Part 1
a.
Correct ending balance of cash and the amount of the omitted check
Balance per bank ..................................$15,100
Plus deposit in transit .......................... 2,450
Less outstanding checks ..................... (1,800)
Reconciled balance ..............................$15,750
Balance per books ................................$17,000
Plus interest earned..............................
52
Less service charges ...........................
(15)
Balance before omitted check ............. 17,037
Reconciled balance (from above) ............ (15,750)
Omitted check ....................................... $ 1,287
b.
c.
d.
Injector
$18,000
(2,500)
$15,500
5
$ 3,100
11-37
f.
g.
$ 3,840
12
$ 320
(1,600)
$ 2,240
$60,000
(2,240)
$57,760
0
2,240
$ 2,240
Warranty expense
Adjusted services revenue for the year (from e) ....
Warranty percent .................................................
Warranty expense (estimated) ............................
$57,760
2.5%
$ 1,444
$ 1,400 credit
1,444 credit
$ 2,844 credit
11-38
Adjustments
Cash ...........................................
$ 17,000
(a) $1,250
(b1)
679
828 (b1)
$ 679 (b2)
(c)
6,000
Sales............................................
700
6,000
45,000
12,200
5,000
1,400
0
0
15,000
59,700
(a)
(d)
6,100
(f)
1,444
2,240
18,300
3,713
2,844
2,240
0
15,000
59,700
1,287
(e)
$
11,700
32,000
Equipment..................................45,000
Accum. deprec.Equip ............
$ 15,750
3,321
551
Trucks .........................................32,000
Accum. deprec.Trucks...........
Adjusted
Trial Balance
10,000
60,000
872
71,026
(e)
2,240
(c) 6,000
0
Deprec. expenseEquip...........
(d) 6,100
0
Wages expense.........................35,000
Interest expense........................
0
Rent expense............................. 9,000
Bad debts expense...................
(b2)
0
551
Miscellaneous expense ........... 1,226
(a)
15
Repairs expense ....................... 8,000
Utilities expense ........................ 6,800
Warranty expense.....................
0 _______ (f) 1,444
Totals ..........................................
$226,026 $226,026
$18,316
11-39
(a)
52
46,300
6,000
6,100
35,000
0
9,000
551
1,241
8,000
6,800
______
1,444
$18,316 $238,207
57,760
924
71,026
_______
$238,207
52
1,250
(b1)
679
679
(b2)
551
551
(c)
6,000
Depreciation on truck.
(d)
6,100
Depreciation on equipment.
(e)
2,240
(f)
(g)
11-40
1,444
$57,760
71,026
924
$129,710
46,300
6,000
6,100
35,000
0
9,000
551
1,241
8,000
6,800
1,444
120,436
$ 9,274
BUG-OFF EXTERMINATORS
Statement of Owners Equity
For Year Ended December 31, 2011
D. Buggs, Capital, December 31, 2010 ......................... $ 59,700
Add: Investments by owner ........................................
0
Net income...........................................................
9,274
68,974
Less: Withdrawals by owner ........................................ (10,000)
D. Buggs, Capital, December 31, 2011 ........................ $ 58,974
11-41
Comprehensive Problem
Part 4 (concluded)
BUG-OFF EXTERMINATORS
Balance Sheet
December 31, 2011
Assets
Current assets
Cash ................................................................
Accounts receivable ...................................... $ 3,321
Allowance for doubtful accounts .................
(700)
Merchandise inventory .................................
Total current assets ......................................
Plant assets
Trucks ............................................................. 32,000
Accumulated depreciationTrucks ............ (6,000)
Equipment ...................................................... 45,000
Accumulated depreciationEquipment ..... (18,300)
Total plant assets ..........................................
Total assets ......................................................
$15,750
2,621
11,700
30,071
26,000
26,700
52,700
$82,771
Liabilities
Current liabilities
Accounts payable .......................................... $ 3,713
Estimated warranty liability .......................... 2,844
Unearned services revenue .......................... 2,240
Total current liabilities ..................................
Long-term liabilities
Long-term notes payable ..............................
Total liabilities ..................................................
Equity
D. Buggs, Capital .............................................
Total liabilities and equity ...............................
11-42
$ 8,797
15,000
23,797
58,974
$82,771
Reporting in Action
1.
BTN 11-1
($ thousands)
907,747
516,653
2,800,363
1,810,520
502
31
5,579.4
58,403.9
3.
4.
11-43
Comparative Analysis
BTN 11-2
One Year
Prior
Two Years
Prior
Net income..................................................
$2,457.144
Add income taxes ......................................
809.366
$1,892.616
$1,293.867
907.747
516.653
.502
.031
$2,800.865
$1,810.551
5,579.4b
58,404.9c
($ millions)
$3,266.511/$0.001
$2,800.865/$0.502
c
$1,810.551/$0.031
b
($ millions)
One Year
Prior
Two Years
Prior
Net income..................................................
$ 8,235
Add income taxes ...................................... 3,831
Add interest expense ................................
3
Income before taxes and interest .............
$12,069
$6,119
2,828
2
$8,949
$3,495
1,511
1
$5,007
4,023a
4,475b
5,007c
$12,069/$3
$ 8,949/$2
c
$ 5,007/$1
b
2. Research In Motion and Apple both are in very strong positions in their
ability to make any interest payments should their income decline. For
all three years, Research In Motions times interest earned markedly
exceeded the industry average of 18.1. For each of the three years,
Apple too had times interest earned metrics that substantially exceeded
the industry average of 18.1. The difference between Research In
Motion and Apple is not worth mentioning as both are strong.
11-44
Ethics Challenge
BTN 11-3
1.
2.
11-45
Communicating in Practice
BTN 11-4
MEMORANDUM
To:
From:
Date:
Subject:
11-46
BTN 11-5
12/31/2009
$ 4,551.0
1,936.0
473.2
$ 6,960.2
11-47
Teamwork in Action
BTN 11-6
2. Entries:
2a. Issue date, Option A
June 1 Cash .......................................................................... 6,000
Notes Payable ....................................................
6,000
6,000
6,150
11-48
6,160
Entries:
50
50
40
40
6,150
11-49
6,160
Entrepreneurial Decision
BTN 11-7
1.
SnorgTees
Income Statement (Prospective)
Current
Operations
Sales.............................................
$1,000,000
European
Total
$ 250,000 $1,250,000
300,000
75,000
375,000
700,000
175,000
875,000
250,000
62,500
312,500
450,000
112,500
562,500
Interest expense..........................
21,000
21,000
Net income...................................
$ 450,000
$ 91,500
$ 541,500
European
Total
$ 400,000 $1,400,000
300,000
120,000
420,000
700,000
280,000
980,000
250,000
100,000
350,000
450,000
180,000
630,000
Interest expense..........................
21,000
21,000
Net income...................................
$ 450,000
$ 159,000
$ 609,000
11-50
European
Total
$ 100,000 $1,100,000
300,000
30,000
330,000
700,000
70,000
770,000
250,000
25,000
275,000
450,000
45,000
495,000
Interest expense..........................
21,000
21,000
Net income...................................
$ 450,000
$ 24,000
$ 474,000
BTN 11-8
11-51
Global Decision
BTN 11-9
Current Year
260
3,889
702
1,081
962
4,970
243
185
1,205
5,155
5.0a
27.9b
1,205/ 243
5,155/ 185
11-52