Danny’s Security Systems, Inc. (DSSI) offers its clients security systems and alarm monitoring

services on a retail basis. DSSI specializes in offering the most up-to-date services with the most

technologically advanced equipment. For example, the high-end alarm system, called DAS59, is

widely recognized as an industry leader. All of the balance sheet items from December 31, 2012,

are shown below along with the events that occurred during 2013. Please ignore all taxes

(income and sales) in preparing your answer.

Danny’s Security Systems, Inc.

Balance Sheet Items

As of December 31, 2012

0.5 points Accounts payable $380,000

0.5 points Accounts receivable $611,000

1.0 points Accumulated depreciation $1,245,000

0.5 points Cash $267,000

0.5 points Common shares $1,152,000

0.5 points Short-term bank loan $125,000

0.5 points Plant, property, and equipment $2,111,000

0.5 points Interest payable $37,000

0.5 points Inventory $850,000

1.0 points Licenses (net) $180,000

0.5 points Long-term bank loan $525,000

0.5 points Goodwill $80,000

0.5 points Retained earnings $304,000

1.0 points Advances from customers $340,000

0.5 points Salaries payable $180,000

0.5 points Short-term investments (trading

securities)

$180,000

0.5 points Office supplies $9,000

The following events occurred during 2013:

JWI 530: Financial Management I

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JWMI 530