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Sales	$	35,300
Sales returns and allowances		1,096
Sales discount		1,156
Purchases		10,712
Purchase discounts		544
Depreciation expense		119
Salary expense		5,400
Insurance expense		2,800
Utilities expense		214
Plumbing expense		254
Rent expense		184

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017
	2017		2016
Gross sales	$	23,000	$	18,000
Sales returns and allowances		800		100
Net sales	$	22,200	$	17,900
Cost of merchandise (goods) sold		11,000		7,600
Gross profit	$	11,200	$	10,300
Operating expenses:
Depreciation	$	1,100	$	800
Selling and administrative		5,200		4,000
Research		950		700
Miscellaneous		760		500
Total operating expenses	$	8,010	$	6,000
Income before interest and taxes	$	3,190	$	4,300
Interest expense		960		700
Income before taxes	$	2,230	$	3,600
Provision for taxes		892		1,440
Net income	$	1,338	$	2,160

LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017
	2017		2016
Assets
Current assets:
Cash	$	11,500	$	8,500
Accounts receivable		16,000		12,000
Merchandise inventory		8,000		13,500
Prepaid expenses		23,500		9,500
Total current assets	$	59,000	$	43,500
Plant and equipment:
Building (net)	$	14,000	$	10,500
Land		13,000		8,500
Total plant and equipment	$	27,000	$	19,000
Total assets	$	86,000	$	62,500
Liabilities
Current liabilities:
Accounts payable	$	12,500	$	6,500
Salaries payable		6,500		4,500
Total current liabilities	$	19,000	$	11,000
Long-term liabilities:
Mortgage note payable		21,500		20,000
Total liabilities	$	40,500	$	31,000
Stockholders’ Equity
Common stock	$	20,500	$	20,500
Retained earnings		25,000		11,000
Total stockholders’ equity	$	45,500	$	31,500
Total liabilities and stockholders’ equity	$	86,000	$	62,500

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017
	2017		2016
Gross sales	$	19,400	$	15,300
Sales returns and allowances		800		100
Net sales	$	18,600	$	15,200
Cost of merchandise (goods) sold		11,900		8,900
Gross profit	$	6,700	$	6,300
Operating expenses:
Depreciation	$	740	$	620
Selling and administrative		2,500		2,200
Research		590		520
Miscellaneous		400		320
Total operating expenses	$	4,230	$	3,660
Income before interest and taxes	$	2,470	$	2,640
Interest expense		600		520
Income before taxes	$	1,870	$	2,120
Provision for taxes		748		848
Net income	$	1,122	$	1,272

LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017
	2017		2016
Assets
Current assets:
Cash	$	12,100	$	9,300
Accounts receivable		16,700		12,700
Merchandise inventory		8,700		14,200
Prepaid expenses		24,200		10,200
Total current assets	$	61,700	$	46,400
Plant and equipment:
Building (net)	$	14,600	$	11,200
Land		13,700		9,200
Total plant and equipment	$	28,300	$	20,400
Total assets	$	90,000	$	66,800
Liabilities
Current liabilities:
Accounts payable	$	13,200	$	7,200
Salaries payable		7,200		5,200
Total current liabilities	$	20,400	$	12,400
Long-term liabilities:
Mortgage note payable		22,400		20,700
Total liabilities	$	42,800	$	33,100
Stockholders’ Equity
Common stock	$	21,100	$	21,100
Retained earnings		26,100		12,600
Total stockholders’ equity	$	47,200	$	33,700
Total liabilities and stockholders’ equity	$	90,000	$	66,800

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017
	2017		2016
Gross sales	$	22,600	$	17,700
Sales returns and allowances		1,000		100
Net sales	$	21,600	$	17,600
Cost of merchandise (goods) sold		11,100		7,800
Gross profit	$	10,500	$	9,800
Operating expenses:
Depreciation	$	1,060	$	780
Selling and administrative		4,900		3,800
Research		910		680
Miscellaneous		720		480
Total operating expenses	$	7,590	$	5,740
Income before interest and taxes	$	2,910	$	4,060
Interest expense		920		680
Income before taxes	$	1,990	$	3,380
Provision for taxes		796		1,352
Net income	$	1,194	$	2,028

LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017
	2017		2016
Assets
Current assets:
Cash	$	11,700	$	8,900
Accounts receivable		16,200		12,200
Merchandise inventory		8,200		13,700
Prepaid expenses		23,700		9,700
Total current assets	$	59,800	$	44,500
Plant and equipment:
Building (net)	$	14,200	$	10,700
Land		13,200		8,700
Total plant and equipment	$	27,400	$	19,400
Total assets	$	87,200	$	63,900
Liabilities
Current liabilities:
Accounts payable	$	12,700	$	7,000
Salaries payable		6,800		4,700
Total current liabilities	$	19,500	$	11,700
Long-term liabilities:
Mortgage note payable		21,700		20,200
Total liabilities	$	41,200	$	31,900
Stockholders’ Equity
Common stock	$	20,700	$	20,800
Retained earnings		25,300		11,200
Total stockholders’ equity	$	46,000	$	32,000
Total liabilities and stockholders’ equity	$	87,200	$	63,900

LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2016 and 2017
	2017		2016
Gross sales	$	22,000	$	17,250
Sales returns and allowances		1,000		100
Net sales	$	21,000	$	17,150
Cost of merchandise (goods) sold		11,250		8,250
Gross profit	$	9,750	$	8,900
Operating expenses:
Depreciation	$	1,000	$	750
Selling and administrative		4,450		3,500
Research		850		650
Miscellaneous		660		450
Total operating expenses	$	6,960	$	5,350
Income before interest and taxes	$	2,790	$	3,550
Interest expense		860		650
Income before taxes	$	1,930	$	2,900
Provision for taxes		772		1,160
Net income	$	1,158	$	1,740

LOGIC COMPANY Comparative Balance Sheet December 31, 2016 and 2017
	2017		2016
Assets
Current assets:
Cash	$	13,500	$	10,500
Accounts receivable		18,000		14,000
Merchandise inventory		10,000		15,500
Prepaid expenses		25,500		11,500
Total current assets	$	67,000	$	51,500
Plant and equipment:
Building (net)	$	15,900	$	12,500
Land		15,000		10,500
Total plant and equipment	$	30,900	$	23,000
Total assets	$	97,900	$	74,500
Liabilities
Current liabilities:
Accounts payable	$	14,500	$	8,500
Salaries payable		8,500		6,500
Total current liabilities	$	23,000	$	15,000
Long-term liabilities:
Mortgage note payable		23,600		22,000
Total liabilities	$	46,600	$	37,000
Stockholders’ Equity
Common stock	$	22,500	$	22,600
Retained earnings		28,800		14,900
Total stockholders’ equity	$	51,300	$	37,500
Total liabilities and stockholders’ equity	$	97,900	$	74,500

	2016			2015			2014			2013
Sales	$	380,000		$	440,000		$	460,000		$	540,000
Gross profit		220,000			280,000			380,000			440,000
Net income		74,000			94,000			44,000			54,000

 

Assets				Liabilities
Current assets:				Current liabilities:
Cash and cash equivalents (Note 1)	$	4,204,190		Notes payable to banks	$	692,221
Investments (Note 1)		32,513,769		Accounts payable		7,024,075
Accounts receivable, less allowances of $746,000 and $742,000		16,186,648		Dividends payable		596,607
Inventories (Note 1):				Accrued liabilities (Note 5)		9,846,534
Finished goods and work in progress		12,630,955		Income taxes payable		4,491,429
Raw materials and supplies		10,255,858
Prepaid expenses		2,017,710