au Credits Debits 2015 96,000 104,000 2,600 Right on Time (ROT) Corporation Trial Balances As of 12/31/2015 and 12/31/2016 Debits Credits 2016 8 Cash 74,700 9 Accounts receivable 92,000 10 Allowance for doubtful accounts 2,300 11 Inventory 56,000 12 Short term investments 13 Property plant & equipment 458,000 14 Accumulated depreciation 60,000 15 Investment in XYZ Bonds 75,000 16 Investment in ROT corporation 58,000 17 Land 130,000 18 Accounts payable 18,000 19 Taxes payable 36,000 20 Dividends payable 25,000 21 Note payable 270,000 22 Common stock 468,000 23 Retained earnings 64,400 943,700 943,700 65,000 24,000 400,000 150,000 120,000 85.000 15,000 31,000 12,000 300,000 348,000 35,400 894,000 894,000 26 1. ROT's net income for the year was $54.000. 28 2. Net income included a $4,000 gain on the sale of the short-term securities and a $5,000 loss 29 on the sale of the bonds. 30 313. Net income included depreciation expense of $24,000. 32 334 An older piece of PP&E with an original cost of $142,000 was sold for $20,000. 34 35 5. A $25,000 dividend was declared. 36 37 6. Additional PP&E was purchased for cash. 38 39 7. 10% of the outstanding balance on the note payable on 12/31 is due on the following 6/30. 40 41 8. Additional land was acquired by issuing common stock. 42 43 Required: 44 45 A. Complete a comparative classified balance sheet for 2015 & 2016 in good form. 46 B. Complete the 2016 statement of cash flows in good form using the indirect method. 48 49 problem IC #9 bal sheet and cf Type here to search B39 * fx 10% of the outstanding balance on then MNO IJK L 1 Note: You will not need to use every lime in every category. Just use the lines you need. Right on Time (ROT) Corporation Balance Sheet As of 12/31/2015 and 12/31/2016 Current Assets 2016 Cash fr Total Cuent Assets Cash Flo Total Assets Ce la ilili Cash Flow Total Current Liabilities 34 Non-Current Liabilities Cash 39 Total Liabilities Net Chang Beginning Ending Bal 41 Equity Total Liabilities & Equity problem IC #9 bal sheet and cf ng balance on the note payable U12 JIJ S T U V M N ROT Corporation Statement of Cash Flows For Year Ended and 12/31/2016 Cash from Operating Activities Cash provided by operating activities Cash Flows from Investing Activities Cash used by investing operating activities Cash Flows from Financing Activities Cash provided by financing activities Net Change in Cash Beginning Balance Fading Balance