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All of the clickable fields are what I believe the answers to be, but I'm uncertain of if I'm on the right track with those
All of the clickable fields are what I believe the answers to be, but I'm uncertain of if I'm on the right track with those
Problem 13-24 Blake Weaver, Carla Vista Enterprises' controller, is preparing the financial statements for 2016. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: On December 31, 2016, Carla Vista sold a piece of equipment with an original cost of $25,560 for $30,680 cash. The equipment had a book value of $13,130. On February 1, 2016, Carla Vista issued $93,190 of common stock to raise cash in anticipation of the purchase of a new building later in the year. On February 2, 2016, Carla Vista took out a ten-year $75,730 long-term loan to provide the remaining funds needed to purchase the building. On May 15, 2016, Carla Vista paid $140,830 for the new building. The company repaid $4,700 of the long-term debt before the end of the year. Carla Vista Enterprises Income Statement For the Year Ended December 31, 2016 Sales revenue $ 1,073,600 Gain on equipment sale 17,550 Total revenue 1,091,150 Cost of goods sold 702,000 Operating expenses Depreciation expense $ 30,300 Interest expense 7,480 Wages expenses 175,880 Other expenses 16,080 229,740 Income before taxes 159,410 Tax expense 63,940 Net income $ 95,470 Carla Vista Enterprises Comparative Balance Sheets As of December 31, 2016 2016 2015 Cash $ 126,200 $ 40,700 Accounts receivable, net 287,240 269,850 Inventory 125,700 95,210 Total current assets 539,140 405,760 Property, plant, & equipment 300,800 173,100 Accumulated depreciation 96,700 66,400 Net property, plant, & equipment 204,100 106,700 Total assets $ 743,240 $ 512,460 Accounts payable $ 150,340 $ 175,350 Taxes payable 17,650 21,550 Mortgage payable 71,030 Total liabilities 239,020 196,900 Common stock 344,890 251,700 Retained earnings 159,330 63,860 Total stockholders' equity 504,220 315,560 Total liabilities & stockholders' equity $ 743,240 $ 512,460 Using the indirect method, prepare Carla Vista Enterprises' statement of cash flows for 2016. (Show amounts that decrease cash flow with either a - sign, e.g. -15,000 or in parentheses, e.g. (15,000).) Using the indirect method, prepare Carla Vista Enterprises' statement of cash flows for 2016. (Show amounts that decrease cash flow with either a - sign, e.g. -15,000 or in parentheses, e.g. (15,000).) Carla Vista Enterprises Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities, Net income / (loss) Adjustments to net income Depreciation Gain on sale of equipment Increase in income taxes payable Increase in inventories Decrease in accounts payable Decrease in income taxes payable - Net cash provided by operating activities Net cash provided by operating activities Cash flows from investing activities Sale of equipment Purchase of building Net cash used by investing activities Cash flows from financing activities Proceeds from issuing common stock 4 Proceeds from long-term debt Repayment of long-term debt Net cash provided by financing activities Change in cash Cash, beginning balance Cash, ending balanceStep by Step Solution
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