Question
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.
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