Atlas Manufacturing's statement of financial position at December 31, 2024 showed:

Account	Amount
Cash	22,000
Accounts Receivable	28,000
Inventory	35,000
Equipment	90,000
Accumulated Depreciation - Equipment	(30,000)
Accounts Payable	18,000
Income Tax Payable	5,000
Notes Payable (long-term)	25,000
Share Capital - Ordinary	60,000
Retained Earnings	37,000

During 2025:

Sales revenue was $260,000 and cost of goods sold was $150,000.
Operating expenses were: salaries and wages $40,000, rent $9,000, and depreciation $12,000.
Equipment that had cost $15,000 (accumulated depreciation $9,000) was sold for $7,500 cash.
New equipment was purchased for $32,000 cash.
Interest expense of $2,500 was paid in cash. Income tax expense was $14,400; income tax payable increased by $1,200.
Accounts receivable increased by $6,000, inventory decreased by $3,500, and accounts payable increased by $3,000.
Ordinary shares were issued for $12,000 cash, $5,000 of the long-term notes was repaid, and cash dividends of $10,000 were paid.

Instructions:

Income Statement — Integrated Capstones

1 Income Statement — Integrated Capstones practice challenge