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Create the statement of cash flows using the indirect method from the information provided. Include the required supplemental information regarding interest and taxes and include
Create the statement of cash flows using the indirect method from the information provided. Include the required supplemental information regarding interest and taxes and include any significant non-cash transactions:
Balance Sheet | ||||||
December 31, 2015 and 2014 | ||||||
Assets | 2015 | 2014 | ||||
Current Assets | ||||||
Cash | $541,263 | $413,900 | ||||
Accounts Receivable | 164,450 | 126,500 | ||||
Merchandise Inventory | 818,532 | 772,200 | ||||
Prepaid Insurance | 680 | 680 | ||||
Total Current Assets | 1,524,925 | 1,313,280 | ||||
Property and Equipment | ||||||
Land | 148,000 | - | ||||
Buildings | 1,534,000 | 1,774,000 | ||||
Accumulated Depreciation-Buildings | (268,450) | (266,100) | ||||
Equipment | 638,000 | 638,000 | ||||
Accumulated Depreciation-Equipment | (446,600) | (382,800) | ||||
Leased Warehouse | 390,000 | - | ||||
Accumulated Depreciaion--Leased Warehouse | (19,500) | - | ||||
Net Property and Equipment | 1,975,450 | 1,763,100 | ||||
Other Assets | ||||||
Investment in Marketable Securities | 187,000 | - | ||||
Assets Held for Sale | - | 15,500 | ||||
Total Other Assets | 187,000 | 15,500 | ||||
Total Assets | 3,687,375 | 3,091,880 | ||||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Accounts Payable | 138,996 | 128,700 | ||||
Salaries and Wages Payable | 23,090 | 21,990 | ||||
Interest Payable | 4,459 | 2,570 | ||||
Taxes Payable | 28,404 | 24,358 | ||||
Unearned Revenue | 21,660 | 19,000 | ||||
Total Current Liabilities | 216,608 | 196,617 | ||||
Long-term Liabilities | ||||||
Capital Lease Liability | 351,000 | - | ||||
Note Payable | 413,400 | 440,400 | ||||
Total Long-term Liabilities | 764,400 | 440,400 | ||||
Total Liabilities | 981,008 | 637,017 | ||||
Stockholders' Equity | ||||||
Common Stock | 680,000 | 680,000 | ||||
Retained Earnings | 2,026,367 | 1,774,863 | ||||
Total Stockholders' Equity | 2,706,367 | 2,454,863 | ||||
Total Liabilities and Stockholders' Equity | $3,687,375 | $3,091,880 |
Required Information | |||||
1 | The company paid dividends to its shareholders at the end of 2015. You need to calculate the amount. | ||||
2 | The company sold a building (warehouse) in 2015. The building had a historical cost of $240,000 and was sold for $245,000 in cash. | ||||
3 | The company purchased land for expansion. | ||||
4 | The company invested in marketable securities with the intent of holding them long-term. They paid $187,000 for this investment. | ||||
5 | The company sold an asset they were holding for sale for $15,500. | ||||
6 | The company obtained a new warehouse through a 20-year capital lease agreement. They made a $39,000 cash principal payment on the first day of the lease term. | ||||
7 | The company made a payment on their long term note. |
|
Income Statement | ||||||
For the Years Ending December 31, 2015 and 2014 | ||||||
2015 | 2014 | |||||
Sales Revenue | 2,141,921 | 2,020,680 | ||||
Cost of Goods Sold | (1,285,153) | (1,212,408) | ||||
Gross Profit | 856,768 | 808,272 | ||||
Operating (Income) Expenses: | ||||||
Salaries and Wages Expense | 363,394 | 346,090 | ||||
Insurance Expense | 4,080 | 4,080 | ||||
Supplies Expense | 10,650 | 9,771 | ||||
Depreciation Expense | 121,650 | 108,150 | ||||
Gain on Sale of Building | (41,000) | - | ||||
Total Operating Expenses | 458,774 | 468,091 | ||||
Income from Operations | 397,994 | 340,181 | ||||
Other Income and (Expenses): | ||||||
Dividend Income | 7,480 | - | ||||
Interest Expense | (26,754) | (15,414) | ||||
Total Other Income and Expenses | (19,274) | (15,414) | ||||
Income Before Income Taxes | 378,720 | 324,767 | ||||
Tax Expense | (113,616) | (97,430) | ||||
Net Income | 265,104 | 227,337 | ||||
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