Question
Condensed financial data of Blue Spruce Corp. follow. Blue Spruce Corp. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 101,000 $ 60,500 Accounts
Condensed financial data of Blue Spruce Corp. follow.
Blue Spruce Corp. Comparative Balance Sheets December 31 | ||||||
---|---|---|---|---|---|---|
Assets | 2017 | 2016 | ||||
Cash | $ 101,000 | $ 60,500 | ||||
Accounts receivable | 109,750 | 47,500 | ||||
Inventory | 140,625 | 128,563 | ||||
Prepaid expenses | 35,500 | 32,500 | ||||
Long-term investments | 172,500 | 136,250 | ||||
Plant assets | 356,250 | 303,125 | ||||
Accumulated depreciation | (62,500 | ) | (65,000 | ) | ||
Total | $853,125 | $643,438 | ||||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $ 127,500 | $ 84,125 | ||||
Accrued expenses payable | 20,625 | 26,250 | ||||
Bonds payable | 137,500 | 182,500 | ||||
Common stock | 275,000 | 218,750 | ||||
Retained earnings | 292,500 | 131,813 | ||||
Total | $853,125 | $643,438 |
Blue Spruce Corp. Income Statement Data For the Year Ended December 31, 2017 | ||||
---|---|---|---|---|
Sales revenue | $485,575 | |||
Less: | ||||
Cost of goods sold | $169,325 | |||
Operating expenses, excluding depreciation | 15,513 | |||
Depreciation expense | 58,125 | |||
Income tax expense | 34,100 | |||
Interest expense | 5,913 | |||
Loss on disposal of plant assets | 9,375 | 292,351 | ||
Net income | $ 193,224 |
Additional information:
1. | New plant assets costing $125,000 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $71,875 and accumulated depreciation of $60,625 were sold for $1,875 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $32,537 was declared and paid during the year.
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