The following data is provided for Penticton Inc for the year ended December 31, 2014.
Income Statement
For the year ended December 31, 2014 $$\begin{array} { l r }
\text { Sales } & \$ 525,000 \
\text { Cost of goods sold } & \underline { 375,000 } \
\text { Gross profit } & 150,000 \
\text { Wage expense } & 90,000 \
\text { Amortization expense } & 30,000 \
\text { Gain on sale of land } & \underline { 18,000 } \
\text { Net income } & \underline { \$ 48,000 }
\end{array}$$ Additional Information: $$\begin{array} { l r }
\text { Increase in accounts receivable } & \$ 17,000 \
\text { Decrease in inventory } & 5,000 \
\text { Increase in account payable } & 12,500 \
\text { Proceeds from sale of land } & 58,000
\end{array}$$ Required:

Question

The following data is provided for Penticton Inc for the year ended December 31, 2014.
Income Statement
For the year ended December 31, 2014 $$\begin{array} { l r } 
\text { Sales } & \$ 525,000 \
\text { Cost of goods sold } & \underline { 375,000 } \
\text { Gross profit } & 150,000 \
\text { Wage expense } & 90,000 \
\text { Amortization expense } & 30,000 \
\text { Gain on sale of land } & \underline { 18,000 } \
\text { Net income } & \underline { \$ 48,000 }
\end{array}$$ Additional Information: $$\begin{array} { l r } 
\text { Increase in accounts receivable } & \$ 17,000 \
\text { Decrease in inventory } & 5,000 \
\text { Increase in account payable } & 12,500 \
\text { Proceeds from sale of land } & 58,000
\end{array}$$ Required:

Quizplus · Accepted Answer

The Answer of The following data is provided for Penticton Inc for the year ended December 31, 2014.
Income Statement
For the year ended December 31, 2014 $$\begin{array} { l r } 
\text { Sales } & \$ 525,000 \
\text { Cost of goods sold } & \underline { 375,000 } \
\text { Gross profit } & 150,000 \
\text { Wage expense } & 90,000 \
\text { Amortization expense } & 30,000 \
\text { Gain on sale of land } & \underline { 18,000 } \
\text { Net income } & \underline { \$ 48,000 }
\end{array}$$ Additional Information: $$\begin{array} { l r } 
\text { Increase in accounts receivable } & \$ 17,000 \
\text { Decrease in inventory } & 5,000 \
\text { Increase in account payable } & 12,500 \
\text { Proceeds from sale of land } & 58,000
\end{array}$$ Required:

The Following Data Is Provided for Penticton Inc for the Year