The accountant for Scott Industries prepared the following list of account balances from the company's records for the year ended December 31. Use this information to answer the question that follows.
$\begin{array}{lrlr}
\text { Fees earned } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 16,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 64,000 & \text { Common stock } & 47,000 \
\text { Accounts payable } & 12,000 & \text { Interest revenue } & 3,000 \
\text { Salaries \& wages expense } & 40,000 & \text { Income taxes expense } & 18,000 \
\text { Income taxes payable } & 5,000 & \text { Rent expense } & 20,000
\end{array}$
-Based on this information, is Scott Industries profitable? Explain your answer.

Question

The accountant for Scott Industries prepared the following list of account balances from the company's records for the year ended December 31. Use this information to answer the question that follows.
 $\begin{array}{lrlr}
\text { Fees earned } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 16,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 64,000 & \text { Common stock } & 47,000 \
\text { Accounts payable } & 12,000 & \text { Interest revenue } & 3,000 \
\text { Salaries \& wages expense } & 40,000 & \text { Income taxes expense } & 18,000 \
\text { Income taxes payable } & 5,000 & \text { Rent expense } & 20,000
\end{array}$ ​
-Based on this information, is Scott Industries profitable? Explain your answer.

Quizplus · Accepted Answer

The Answer of The accountant for Scott Industries prepared the following list of account balances from the company's records for the year ended December 31. Use this information to answer the question that follows.
 $\begin{array}{lrlr}
\text { Fees earned } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 16,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 64,000 & \text { Common stock } & 47,000 \
\text { Accounts payable } & 12,000 & \text { Interest revenue } & 3,000 \
\text { Salaries \& wages expense } & 40,000 & \text { Income taxes expense } & 18,000 \
\text { Income taxes payable } & 5,000 & \text { Rent expense } & 20,000
\end{array}$ ​
-Based on this information, is Scott Industries profitable? Explain your answer.

The Accountant for Scott Industries Prepared the Following List of Account