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The income statement, balance sheet, and additional informat...


The income statement, balance sheet, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC.Income StatementFor the Year Ended December 31, 2015   Net sales $ 3,386,000   Expenses:        Cost of goods sold $ 2,200,000          Operating expenses 908,000          Depreciation expense 32,000          Loss on sale of land 8,500          Interest expense 17,500        Income tax expense 53,000           Total expenses 3,219,000   Net income $ 167,000 VIDEO PHONES, INC.Balance SheetDecember 31 2015 2014   Assets   Current assets:      Cash $ 270,300    $ 185,900         Accounts receivable 86,500    65,000         Inventory 105,000    140,000         Prepaid rent 13,200    6,600      Long-term assets:      Investments 110,000    0         Land 215,000    250,000         Equipment 280,000    215,000         Accumulated depreciation (75,000) (43,000)         Total assets $ 1,005,000    $ 819,500      Liabilities and Stockholders’ Equity   Current liabilities:      Accounts payable $ 70,500    $ 86,000         Interest payable 6,500    11,000         Income tax payable 15,500    14,500      Long-term liabilities:      Notes payable 295,000    230,000      Stockholders’ equity:      Common stock 350,000    350,000         Retained earnings 267,500    128,000            Total liabilities and stockholdersA????1 equity $ 1,005,000    $ 819,500