Based on the Following Income Statement, Prepare a Common-Size Income

question 133

Essay

Based on the following income statement, prepare a common-size income statement based on sales. Round to two decimal places.
Cash $60,000
Accounts receivable, net of
allowance for doubtful accounts 550,000
Inventory 650,000
Total current assets $1,260,000
Property, plant, and equipment
net of depreciation 1,300,000
Total assets $2,560,000
Accounts payable $270,000
Salaries payable 80,000
Taxes payable 55,000
Total current liabilities $405,000
Bonds payable 900,000
Total liabilities $1,305,000
Common stock 450,000
Retained earnings 805,000
Total liabilities and stockholders' equity $2,560,000

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Definitions:

Correctional Officers

Law enforcement personnel responsible for the supervision, safety, and security of inmates in a prison or jail.

Farmer v. Brennan

A landmark United States Supreme Court case that addressed the rights of prisoners to be protected from harm, establishing the deliberate indifference standard for inmate welfare.

Deliberate Indifference

A conscious or intentional lack of attention or concern towards a known or obvious risk or violation of rights, often discussed in legal contexts.

Prison Rape

An act of sexual assault committed against an inmate within a prison setting.