Chapter 2, Problem 2.7E

he comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.  DUX COMPANYComparative Balance SheetsDecember 31, 2021 and 2020($ in thousands)   2021   2020   Assets                 Cash $  195     $  134     Accounts receivable    60        62     Less: Allowance for uncollectible accounts   (4 )     (3 )   Dividends receivable    15        8     Inventory    73        62     Long-term investment    45        40     Land    112        70     Buildings and equipment    351        376     Less: Accumulated depreciation   (55 )     (74 )     $  792     $  675     Liabilities                 Accounts payable $  25     $  32     Salaries payable    8        11     Interest payable    10        8     Income tax payable    13        14     Notes payable    42        0     Bonds payable    263        190     Less: Discount on…

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands)   2024 2023 Assets     Cash $ 121 $ 40 Accounts receivable 43 71 Less: Allowance for uncollectible accounts (5) (4) Dividends receivable 4 3 Inventory 100 95 Long-term investment 54 50 Land 95 85 Buildings and equipment 162 200 Less: Accumulated depreciation (38) (80)   $ 536 $ 460 Liabilities     Accounts payable $ 46 $ 82 Salaries payable 6 9 Interest payable 7 2 Income tax payable 5 6 Notes payable 10 0 Bonds payable 80 50 Less: Discount on bonds (5) (6) Shareholders' Equity     Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 163 97 Less: Treasury stock (10) 0   $ 536 $ 460 DUX COMPANY Income Statement For the Year…

Comparative balance sheets for 2024 and 2023, a statement of income for 2024, and additional information from the accounting records of Red, Incorporated, are provided below: RED, INCORPORATED Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions)   2024 2023 Assets     Cash $ 38 $ 110 Accounts receivable 215 146 Prepaid insurance 13 7 Inventory 280 200 Buildings and equipment 428 364 Less: Accumulated depreciation (133) (254)   $ 841 $ 573 Liabilities     Accounts payable $ 101 $ 128 Accrued liabilities 12 17 Notes payable 64 0 Bonds payable 150 0 Shareholders’ Equity     Common stock 414 414 Retained earnings 100 14   $ 841 $ 573 RED, INCORPORATED Statement of Income For Year Ended December 31, 2024 ($ in millions) Revenues     Sales revenue   $ 2,140 Expenses     Cost of goods sold $ 1,447   Depreciation expense 23   Operating expenses 520 1,990 Net income   $ 150 Additional information from the…