69 2. What was the amount of the cash receipt from the sale of plant assets? E16-23 Computing the cash effect Rouse Exercise Equipment, Inc. reported the following financial Learning Objective 2 statements for 2018: 2. Payment: $8,000 4. Dividends $47,000 ROUSE EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 713,000 Cost of Goods Sold 342,000 Gross Profit 371,000 Operating Expenses Depreciation Expense S 54,000 Other Operating Expenses 210,000 Total Operating Expenses 264,000 Net Income $ 107,000 MacBook Pro 888 80 F3 F6 F4 2 & % 0 9 CHAPTER 16 ROUSE EXERCSE EQUIPMENT, INC Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash S 17.000 S 16,000 Accounts Receivable 57,000 46,000 Merchandise Inventory 79,000 90,000 Long-term Assets Plants Assets 260,500 216,400 Accumulated Depreciation-Mant Assets 38,500) (32,400) Investments 96,000 73,000 Total Assets $471,000 $ 409,000 Liabilities Current Liabilities Accounts Payable $ 72,000 S 71,000 Salaries Payable 3,000 5,000 Long-term Liabilities Notes Payable 61,000 69,000 Total Liabilities 136,000 145,000 Stockholders Equity Common Stock, no par 45,000 4,000 290,000 230,000 Retained Earnings Total Stockholders Equity 335,000 264,000 Total Liabilities and Stockholders Equity S 471,000 $ 409,000 Requirements 1. Compute the amount of Rouse Exercise's acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $47,900. No cash was received upon disposal. 2 Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year. 3. Compute the issuance of common stock with Rouse Exercise having only one common stock transaction during the year. 4. Compute the payment of cash dividends