Question
Bregman Co. owns and operates a management consulting firm. Below is the year-end balance sheet for 2018. For 2019, Bregman had $75,000 in sales, from
Bregman Co. owns and operates a management consulting firm. Below is the year-end balance sheet for 2018. For 2019, Bregman had $75,000 in sales, from which he is still owed $10,000 at the end of the year. Because he has always been able to collect on his receivables within a three month period, including the receivables owed from 2018, he estimates he will have no bad debts. Bregman purchases $4,500 of supplies during the year for cash, and has $250 of supplies remaining at year end. Bregman also incurred an additional $45,000 in operating expenses for 2019, but had an outstanding balance at year end for these expenses of $3,500. The interest payable on the 2018 balance sheet represents one year of interest on the $25,000 notes payable. He paid the accrued interest along with the entire principal of the loan on June 30, 2019. The computer equipment listed on the 2018 balance sheet was sold on January 1 2019 for $14,000. He purchased a different type of computer system on that date for $24,000, paying cash, which he expects to have a five year life and a residual value of $4,000. Bregman declared and paid $8,000 in dividends on December 14, 2019.
Required: Ignoring taxes, provide an (a) Income Statement and (b) Balance Sheetfor Bregmans 2019 fiscal year, ending December 31, 2019. Also, determine (i) Cash from Operations, (ii) Cash from Investing, and (iii) Cash from Financing for the year. Be sure to show your work below, but also please place in the box to the right answers to key figures from the problem (note, you will not receive credit for these answers without providing the details and presenting a full income statement and balance sheet).
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