Brecker Inc., a greeting card company, had the following statements prepared as of December 31,…

Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019     12/31/20   12/31/19 Cash   $6,000     $7,000   Accounts receivable   62,000     51,000   Short-term debt investments (available-for-sale)   35,000     18,000   Inventory   40,000     60,000   Prepaid rent   5,000     4,000   Equipment   154,000     130,000   Accumulated depreciation—equipment   (35,000 )   (25,000 ) Copyrights   46,000     50,000   Total assets   $313,000     $295,000                 Accounts payable   $46,000     $40,000   Income taxes payable   4,000     6,000   Salaries and wages payable   8,000     4,000   Short-term loans payable   8,000     10,000   Long-term loans payable   60,000     69,000   Common stock, $10 par   100,000     100,000   Contributed capital, common stock   30,000     30,000   Retained earnings   57,000     36,000   Total liabilities & stockholders’ equity   $313,000     $295,000     BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue       $338,150 Cost of goods sold       175,000 Gross profit       163,150 Operating expenses       120,000 Operating income       43,150 Interest expense   $11,400     Gain on sale of equipment   2,000   9,400 Income before tax       33,750 Income tax expense       6,750 Net income       $27,000  

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