Additionally, Granite Rock purchased land of land of $26,500 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed for $0. The cost and accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash.
Requirement 1: Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method.
Granite Rock, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets Cash Accounts Receivable Merchandise Inventory 27,000 $ 26,900 79,400 15,100 25,200 91,600 Long-term Assets Land Plant Assets 35,500 126,230 (22,330) 272,700 $ 9,000 116,330 (18,630) 238,600 Accumulated DepreciationPlant Assets $ Total Assets Liabilities Current Liabilities: $ Accounts Payable Accrued Liabilities 35,400 $ 28,900 30,000 30,900 Long-term Liabilities: 76.000 Notes Payable Total Liabilities 106,000 166,900 140,300 Stockholders' Equity Common Stock, no par 88,600 43,800 Retained Earnings 64,200 7,500 71,700 Total Stockholders' Equity $ 272,700 $ 238,600 Total Liabilities and Stockholders' Equity 3: More Info Additionally, Granite Rock purchased land of $26,500 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash. 4: Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment? Granite Rock, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 443,000 208,200 234,800 Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets $ 78,400 14,100 10,800 103,300 Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses) 131,500 Interest Revenue 9,000 (21,400) Interest Expense (12,400) Total Other Income and (Expenses) Net Income Before Income Taxes 119,100 19,400 Income Tax Expense $ 99,700 Net Income 2: Data Table Granite Rock, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets Cash Accounts Receivable Merchandise Inventory 27,000 $ 26,900 79,400 15,100 25,200 91,600 Long-term Assets Land Plant Assets 35,500 126,230 (22,330) 272,700 $ 9,000 116,330 (18,630) 238,600 Accumulated DepreciationPlant Assets $ Total Assets Liabilities Current Liabilities: $ Accounts Payable Accrued Liabilities 35,400 $ 28,900 30,000 30,900 Long-term Liabilities: 76.000 Notes Payable Total Liabilities 106,000 166,900 140,300 Stockholders' Equity Common Stock, no par 88,600 43,800 Retained Earnings 64,200 7,500 71,700 Total Stockholders' Equity $ 272,700 $ 238,600 Total Liabilities and Stockholders' Equity 3: More Info Additionally, Granite Rock purchased land of $26,500 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and accumulated depreciation of the disposed asset was $10,400. The plant acquisition was for cash. 4: Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment? Granite Rock, Inc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 443,000 208,200 234,800 Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation ExpensePlant Assets $ 78,400 14,100 10,800 103,300 Other Operating Expenses Total Operating Expenses Operating Income Other Income and (Expenses) 131,500 Interest Revenue 9,000 (21,400) Interest Expense (12,400) Total Other Income and (Expenses) Net Income Before Income Taxes 119,100 19,400 Income Tax Expense $ 99,700 Net Income 2: Data Table
