Cashflow Assignment $-$ Redard Corporation

Comparative Balance Sheets

June $30,2013$ and June $302014$

Assets $20132014$ Difference

Cash $50,000164,800114,800$

Accounts Receivable $230,000195,200(34,800)$

Inventory $420,000320,000(100,000)$

Prepaid Expenses $6,0005,000(1,000)$

Furniture $144,000148,0004,000$

Accumulated Depr $-$ Furniture $(24,000)(42,000)(18,000)$

Total Assets $826,000791,000$

Liabilities & Stockholder$$s Equity

Accounts Payable $200,400143,400(57,000)$

Income tax payable $7,4004,400(3,000)$

Notes Payable $($Long term$)20,00040,00020,000$

Bond Payable $200,000100,000(100,000)$

Common Stock $$10$ par value $200,000240,00040,000$

Additional paid in capital $121,440181,44060,000$

Retained Earnings $76,76081,7605,000$

Total Liabilities & S$/$E $826,000791,000$

Redard Corporation

Income Statement

June $30,2014$

Sales $1,609,000$

Cost of Goods Sold $1,127,800$

Gross Profit $481,200$

Operating Expenses $449,400$

Operating Income $31,800$

Gain on sale of furniture $7,000$

Interest expense $23,200$

Income before income taxes $15,600$

Income tax expense $4,600$

Net Income $11,000$

Additional information:

$1.$ Purchased furniture in the amount of $$39,600$

$2.$ Sold furniture that cost $$35,600$ with accum. depreciation of $$28,800$ at a gain of $$7,000$

$3.$ Recorded depreciation on the furniture for the year, $$46,800$

$4.$ Repaid a note in the amount of $$20,000$

$5.$ Converted bonds payable in the amount of $$100,000$ into $4,000$ shares of common stock.

$6.$ Paid dividends of $$6,000$

$7.$ Borrowed $$40,000$ on a new note