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1. (25 pts) ABC Inc. had a net loss of $37,000 during its last fiscal year and the following is also available: Depreciation $19,000 Decrease

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1. (25 pts) ABC Inc. had a net loss of $37,000 during its last fiscal year and the following is also available: Depreciation $19,000 Decrease in Accounts Receivable $4,000 Increase in inventory $2,000 Increase in Accounts Payable $18,000 Increase in salaries payable $5,000 If they started the year with $3,000 in their cash account, how much cash did they have at the end of the year? 2. (25 pts) Sales from Bronx Tool & Die during 20X1 were $599,000. 20% of them on credit and 80% from cash. During the year, accounts receivable increased from S151,000 to $178,000, an increase of $27,000. What's the amount of cash did Bronx receive from customers during 20X1? 3. (25 pts) Arami Company purchased common stock in Ramona Company for $400,000. In the current year, Ramona Company reported net income of $50,000 and paid a dividend of $32,000. At the end of the year, the market value of the ment in Ramona Company was $410,000. A) Assume Arami Company owns 10% of the shares of Ramona Company. Arami Company considers the investment to be available-for-sale securities. Show the effects of the transactions above on the accounts of Arami Company using the balance sheet equation. B) Assume Arami Company owns 25% of the shares of Ramona Company. Show the effects of the transactions above on the accounts of Arami Company using the balance sheet equation. 4. (25 pts) The following balances are available for Thompson Company on December 31, 2017: Accumulated depreciation $21,800 Accounts payable 11,200 Accounts receivable 9,800 Additional paid-in capital 24,000 Common stock 6,000 Cash 7,400 Fixed assets 89,400 Interest payable 2,400 Inventory 13,600 Long-term notes payable 28,000 Prepaid rent 2,500 Retained earnings Wages payable 6,400 Prepare a classified balance sheet at December 31, 2017

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