Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash Computations A comparative balance sheet, income statement, and additional information for Shillig Doors Inc. follow. Shillig Doors Inc. Condensed Comparative Income Statement For the

Cash Computations

A comparative balance sheet, income statement, and additional information for Shillig Doors Inc. follow.

Shillig Doors Inc.

Condensed Comparative Income Statement

For the Years Ended December 31, 2015 and 2014

2015

2014

Net Sales

$3,946,000

$3,112,000

Cost of goods sold

2,385,600

2,364,000

Gross profit

$1,561,000

$748,000

Expenses

792,000

506,000

Net income

$769,000

$242,000

Shillig Doors Inc.

Comparative Balance Sheet

December 31, 2015 and 2014

2015

2014

Assets

Current assets:

Cash

$131,000

$102,000

Available-for-sale securities

400.000

-

Accounts receivable

409,000

372,000

Inventory

289,000

304,000

Prepaid expenses

36,000

24,000

Total current assets

$1,265,000

$802,000

Property, plant, and equipment

$656,000

$541,000

Accumulated depreciation

(81,000)

(42,000)

$575,000

$499,000

Total assets

$1,840,000

$1,301,000

Liabilities and Stockholders Equity

Current liabilities:

Accounts payable

$191,000

$174,000

Accrued expenses

124,000

110,000

Dividends payable

165,000

100,000

Total current liabilities

$480,000

$384,000

Notes payable due 2017

210,000

106,000

Total liabilities

$690,000

$490,000

Stockholders equity:

Common stock

$625,000

$600,000

Retained earnings

525,000

211,000

Total stockholders equity

$1,150,000

$811,000

Total liabilities and stockholders equity

$1,840,000

$1,301,000

Additional information for Shillig:

(a) All accounts receivable and accounts payable relate to trade merchandise.

(b) The proceeds from the notes payable were used to finance plant expansion.

(c) Capital stock was sold to provide additional working capital.

Compute the following for 2015:

Cash collected from accounts receivable, assuming all sales are on account.

Cash payments made on accounts payable to suppliers, assuming that all purchases of inventory are on account.

Cash payments for dividends.

Cash receipts that were not provided by operations.

Cash payments for assets that were not reflected in operations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Data And Analytics Playbook Proven Methods For Governed Data And Analytic Quality

Authors: Lowell Fryman, Gregory Lampshire, Dan Meers

1st Edition

0128023074, 978-0128023075

More Books

Students also viewed these Accounting questions

Question

Differentiate tan(7x+9x-2.5)

Answered: 1 week ago

Question

Explain the sources of recruitment.

Answered: 1 week ago

Question

Differentiate sin(5x+2)

Answered: 1 week ago

Question

Compute the derivative f(x)=1/ax+bx

Answered: 1 week ago