P15-3A (a)

Incorrect.

 
 

Condensed balance sheet and income statement data for
Kersenbrock Corporation appear below.

 
KERSENBROCK CORPORATION

 
Balance Sheets

 

December 31

 
 
2009
 
2008
 
2007

 
Cash
 $ 25,000
 
$ 20,000
 
$ 18,000

 
Receivables (net)
50,000
 
45,000
 
48,000

 
Other current assets
90,000
 
95,000
 
64,000

 
Investments
75,000
 
70,000
 
45,000

 
Plant and equipment (net)

400,000

 

370,000

 

358,000

 
 

$640,000

 

$600,000

 

$533,000

 
 
 
 
 
 
 

 
Current liabilities
$ 75,000
 
$ 80,000
 
$ 70,000

 
Long-term debt
80,000
 
85,000
 
50,000

 
Common stock, $10 par
340,000
 
310,000
 
300,000

 
Retained earnings

145,000

 

125,000

 

113,000

 
 

$640,000

 

$600,000

 

$533,000

 
KERSENBROCK CORPORATION