Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Condensed financial data of Bing Company appear below: BING COMPANY Comparative Balance Sheet December 31 2017 2016 Assets Cash $ 70,000 $ 35,000 Accounts receivable

Condensed financial data of Bing Company appear below:

BING COMPANY

Comparative Balance Sheet

December 31

2017 2016

Assets

Cash $ 70,000 $ 35,000

Accounts receivable 82,000 53,000

Inventories 120,000 132,000

Prepaid expenses 19,000 25,000

Investments 80,000 65,000

Plant assets 310,000 250,000

Accumulated depreciation (65,000) (60,000)

Total $616,000 $500,000

Liabilities and Stockholders' Equity

Accounts payable $ 95,000 $ 75,000

Accrued expenses payable 22,000 24,000

Bonds payable 120,000 150,000

Common stock 245,000 170,000

Retained earnings 134,000 81,000

Total $616,000 $500,000

BING COMPANY

Income Statement

For the Year Ended December 31, 2017

Sales $480,000

Less:

Cost of goods sold $290,000

Operating expenses (includes depreciation expense) 77,000

Income taxes 15,000

Interest expense 13,000

Loss on sale of plant assets 3,000 398,000

Net income $ 82,000

Additional information:

1. Old plant assets costing $25,000 were sold when book value was $13,000.

2. Bonds with a face value of $30,000 were converted into $30,000 of common stock.

BING COMPANY

Statement of Cash Flows

For the Year Ended December 31, 2017

Cash flows from operating activities

Net cash ______________ operating activities

Cash flows from investing activities

Net cash ______________ investing activities

Cash flows from financing activities

Net cash _______________ financing activities

Net ___________ in cash

Cash at beginning of period

Cash at end of period

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

Product Costing Concepts And Applications

Authors: Ralph S. Polimeni

3rd Edition

0072390840, 978-0072390841

More Books

Students also viewed these Accounting questions