Question
Balance Sheet As of December 31, 20X1 and 20X0 Assets: 20X1 20X0 Current Assets: Cash $ 12,000 $ 24,000 Accounts Receivable 40,000 23,000 Inventory 60,000
Balance Sheet
As of December 31, 20X1 and 20X0
Assets: 20X1 20X0
Current Assets:
Cash $ 12,000 $ 24,000
Accounts Receivable 40,000 23,000
Inventory 60,000 40,000
Prepaid Expenses 4,000 2,000
Supplies 10,000 11,000
Total Current Assets 126,000 100,000
Long-Term Assets:
Property and equipment, net 162,000 138,000
Long term investment 70,000 60,000
Total Long-Term Assets 232,000 198,000
Total Assets: $ 358,000 $ 298,000
Liabilities and Stockholders Equity:
Current Liabilities:
Accounts Payable $ 40,000 $ 39,000
Interest Payable 4,000 3,000
Income Tax Payable 12,000 14,000
Total Current Liabilities 56,000 56,000
Non-current Liabilities:
Bond Payable 70,000 110,000
Note payable 64,000 4,000
Total Liabilities: 190,000 170,000
Stockholders Equity:
Common Stock 80,000 70,000
Retained Earnings 88,000 58,000
Total Stockholders Equity 168,000 128,000
Total Liabilities & Stock. Equity $ 358,000 $ 298,000
Income Statement
For the year ended 20X1
Revenue $ 560,000
Cost of Goods Sold 275,000
Gross Profit 285,000
Operating Expenses:
General and Administrative 106,000
Depreciation 22,000
Other 96,500
Operating Income 60,500
Other gains and (losses):
Interest Expense (7,500)
Investment Income 2,000
Income before income tax 55,000
Income tax expense 15,000
Net Income $ 40,000
20X1 Additional Information:
- $27,000 cash purchase of land.
- Purchased $55,000 of equipment using a note payable.
- Sold a building for $40,000 cash.
- Received $10,000 cash from issuing 2,500 shares of common stock.
- Company paid $44,000 cash to retire a bond.
- Declared and paid a cash dividend of $10,000.
- Borrowed $5,000 of cash with a long-term note payable.
- Purchased $10,000 of long-term investments.
Prepare a statement of cash flows as of December 31, 20X1 using the indirect method.
Cash Flows from Operating Activities:
Adjustments to reconcile net income
to net cash provided by operating activities:
Changes in current assets and current liabilities:
Net cash provided by (used in) Operating Activities
Cash flows from investing activities:
Net Cash provided by (used in) Investing Activities
Cash flows from Financing Activities:
Net cash provided by (used in) Financing Activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
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Fundamentals of Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
6th edition
0-07-786223-6, 101259095592, 13: 978-0-07-7, 13978125909559, 978-0077862237
