The Fred Proffet Company has been in the contract food service management business for many years. Their
Question:
The Fred Proffet Company has been in the contract food service management business for many years. Their clients chose the Proffet Company for its creativity and attention to detail. Allisha McKay is the person who prepares the summary of sources and uses of funds for the Proffet Company. Help her do that by using the balance sheets that follow to calculate the company’s sources and uses of funds, and answer the questions that follow.
—a—— onda ont ei THE FRED PROFFET COMPANY Balance Sheets Assets Current Assets Cash Marketable Securities Net Receivables Inventories Total Current Assets Property and Equipment Less Accumulated Depreciation Net Property and Equipment Total Assets Liabilities and Owners’ Equity Current Liabilities Accounts Payable Notes Payable Other Current Liabilities Total Current Liabilities Long-Term Liabilities Long-Term Debt Total Liabilities Owners’ Equity Common Stock Paid in Capital Retained Earnings Total Owners’ Equity Total Liabilities and Owner’s Equity Total Sources and Uses of Funds 2011 336,000 1,240,000 1,520,000 844,000 3,940,000 1,200,000 420,000 780,000 4,720,000 584,000 134,000 636,000 1,354,000 _720,000 2,074,000 300,000 1,200,000 1,146,000 2,646,000 —
4,720,000 December 31, 2011 and 2012 2012 350,000 1,200,000 1,550,000 830,000 ———ee 3,930,000 1,500,000 525,000 975,000 4,995,000 565,000 90,000 300,000 955,000 1,100,000 2,055,000 320,000 1,280,000 1,250,000 2,850,000 4,905,000 t 1 Sources Uses
a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change?
b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change?
c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change?
d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change?
e. What was the total amount of Sources and Uses of Funds?
Step by Step Answer:
Managerial Accounting For The Hospitality Industry
ISBN: 9780471723370
1st Edition
Authors: Lea R Dopson, David K Hayes