Portions of the financial statements for Alliance Technologies are provided bel ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $375,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $220,000 67,000 16,700 25,500 Total expenses 329, 200 $ 45,800 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable $ 6,700 13,700 9,700 5,700 8,700 22,800

Portions of the financial statements for Alliance Technologies are provided bel ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2021 Net sales $375,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense $220,000 67,000 16,700 25,500 Total expenses 329, 200 $ 45,800 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increase in salaries payable Decrease in accounts payable Increase in income tax payable $ 6,700 13,700 9,700 5,700 8,700 22,800

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 59BE

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