Use the following information to answer questions 7 –
10.
Green Thumb Garden Supplies reported the following information
for 2017 and 2018.
20182017
Assets
Cash$ 50,000$ 45,000
Accounts receivable35,00025,000
Inventory25,00020,000
Property, plant, and equipment 240,000 210,000
Total assets$350,000$300,000
Liabilities and Shareholders’ Equity
Current liabilities$ 65,000$ 60,000
Non-current liabilities110,00090,000
Shareholders’ equity—common 175,000 150,000
Total liabilities and shareholders’
equity$350,000$300,000
Income statement for 2018
Sales$95,000
Cost of goods sold 45,000
Gross profit50,000
Operating expenses 15,000
Income before income tax35,000
Income tax expense 5,000...