Following are selected balance sheet accounts of Sarasota Bros. Corp. at December 31, 2025 and 2024, and the increases or decreases in each account from 2024 to 2025. Also presented is selected income statement information for the year ended December 31, 2025, and additional information.

\begin{tabular}{|c|c|c|c|}
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\multicolumn{4}{|c|}{Selected Balance Sheet Accounts} \\
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Account & 2025 & 2024 & Increase (Decrease) \\
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Assets & & & 4 \\
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Accounts Receivable & [tex]$\$[/tex]34,100[tex]$ & $[/tex]\[tex]$23,900$[/tex] & [tex]$\$[/tex]10,200[tex]$ \\
\hline
Property, Plant, and Equipment & $[/tex]\[tex]$276,600$[/tex] & [tex]$\$[/tex]247,300[tex]$ & $[/tex]\[tex]$29,300$[/tex] \\
\hline
Accumulated Depreciation - Plant Assets & [tex]$(\$[/tex]179,700)[tex]$ & $[/tex](\[tex]$165,400)$[/tex] & [tex]$(\$[/tex]14,300)[tex]$ \\
\hline
\end{tabular}

\begin{tabular}{|l|r|r|r|}
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\multicolumn{4}{|c|}{Liabilities and Stockholders' Equity} \\
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Account & 2025 & 2024 & Increase (Decrease) \\
\hline
Bonds Payable & & & \\
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Dividends Payable & $[/tex]\[tex]$7,900$[/tex] & [tex]$\$[/tex]46,200[tex]$ & $[/tex](\[tex]$38,300)$[/tex] \\
\hline
Common Stock, [tex]$\$[/tex]1[tex]$ par & $[/tex]\[tex]$21,800$[/tex] & [tex]$\$[/tex]4,900[tex]$ & $[/tex]\[tex]$16,900$[/tex] \\
\hline
Additional Paid-in Capital & [tex]$\$[/tex]8,900[tex]$ & $[/tex]\[tex]$2,900$[/tex] & [tex]$\$[/tex]6,000[tex]$ \\
\hline
Retained Earnings & $[/tex]\[tex]$103,500$[/tex] & [tex]$\$[/tex]90,400[tex]$ & $[/tex]\[tex]$13,100$[/tex] \\
\hline
\end{tabular}



Answer :

Sure, let's work through this step-by-step problem while explaining each part:

### Understanding the Problem:
We are presented with a balance sheet consisting of selected accounts for Sarasota Bros. Corp. for the years ending December 31, 2025, and 2024, and we also have the changes in these accounts from 2024 to 2025. Additionally, we are provided with some income statement information for the year ended December 31, 2025.

### List of Accounts with their figures:
#### Assets:
- Accounts Receivable 2025: \[tex]$34,100 - Accounts Receivable 2024: \$[/tex]23,900
- Increase in Accounts Receivable: \[tex]$10,200 - Property, Plant, and Equipment 2025: \$[/tex]276,600
- Property, Plant, and Equipment 2024: \[tex]$247,300 - Increase in Property, Plant, and Equipment: \$[/tex]29,300
- Accumulated Depreciation - Plant Assets 2025: \[tex]$179,700 - Accumulated Depreciation - Plant Assets 2024: \$[/tex]165,400
- Increase in Accumulated Depreciation: \[tex]$14,300 #### Liabilities and Stockholders' Equity: - Bonds Payable: (Values not directly provided) - Dividends Payable 2025: \$[/tex]7,900
- Dividends Payable 2024: \[tex]$46,200 - Increase in Dividends Payable: \$[/tex](2,600)
- Common Stock (\[tex]$1 par) 2025: \$[/tex]21,800
- Common Stock (\[tex]$1 par) 2024: \$[/tex]4,900
- Increase in Common Stock: \[tex]$3,000 - Additional Paid-In Capital 2025: \$[/tex]8,900
- Additional Paid-In Capital 2024: \[tex]$2,900 - Increase in Additional Paid-In Capital: \$[/tex]2,800
- Retained Earnings 2025: \[tex]$103,500 - Retained Earnings 2024: \$[/tex]90,400
- Increase in Retained Earnings: \[tex]$13,100 ### Question Analysis: While we have a range of balance sheet accounts, we need to focus on understanding how these accounts have changed and the overall impact on the balance sheet and potentially other parts of the financial statements. ### Calculation Summary: 1. Total Change in Current Assets: - The main current asset given is Accounts Receivable. - Change in Accounts Receivable from 2024 to 2025 = \$[/tex]10,200

2. Total Change in Non-Current Assets:
- Property, Plant, and Equipment increased by \[tex]$29,300. - Accumulated Depreciation increased by \$[/tex](14,300). Since it is a contra-asset account, this increase reduces the net book value of the property, plant, and equipment.

3. Total Changes in Liabilities:
- The only liability directly influenced is Dividends Payable.
- Change in Dividends Payable = \[tex]$(2,600) 4. Total Changes in Stockholders' Equity: - Common Stock increased by \$[/tex]3,000.
- Additional Paid-In Capital increased by \[tex]$2,800. - Retained Earnings increased by \$[/tex]13,100.

### Insights and Interpretation:

The company saw increases in their Property, Plant, and Equipment, signaling potential reinvestment in productive capacity. The increase in Accumulated Depreciation suggests continued use and aging of their fixed assets. The rise in Accounts Receivable indicates an increase in sales on credit or potential issues in collecting outstanding accounts.

On the equity side, injection of additional capital and an increase in retained earnings denote better profitability or fewer distributions to shareholders as dividends.

### Final Summary:

By breaking down each component and understanding the changes, we can better interpret the overall financial health and activity of Sarasota Bros. Corp. for the given year. These changes reflect adjustments in asset management, debt obligations, and equity financing practices.