Question
Current Attempt in Progress Cullumber Company had the following information available at the end of 2017. CULLUMBER COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31,
Current Attempt in Progress
Cullumber Company had the following information available at the end of 2017.
CULLUMBERCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 | ||||||
2017 | 2016 | |||||
Cash | $9,950 | $4,010 | ||||
Accounts receivable | 20,550 | 12,960 | ||||
Short-term investments | 21,830 | 29,800 | ||||
Inventory | 42,340 | 35,030 | ||||
Prepaid rent | 2,990 | 12,090 | ||||
Prepaid insurance | 2,090 | 91 | ||||
Supplies | 990 | 75 | ||||
Land | 124,970 | 174,030 | ||||
Buildings | 353,000 | 353,000 | ||||
Accumulated depreciationbuildings | (104,980 | ) | (86,810 | ) | ||
Equipment | 522,130 | 396,610 | ||||
Accumulated depreciationequipment | (128,890 | ) | (111,580 | ) | ||
Patents | 44,790 | 49,520 | ||||
Total assets | $911,760 | $868,826 | ||||
Accounts payable | $21,970 | $31,740 | ||||
Income taxes payable | 5,030 | 3,980 | ||||
Salaries and wages payable | 4,980 | 3,020 | ||||
Short-term notes payable | 10,080 | 10,080 | ||||
Long-term notes payable | 60,150 | 70,050 | ||||
Bonds payable | 396,540 | 396,540 | ||||
Premium on bonds payable | 23,170 | 27,926 | ||||
Common stock | 241,390 | 218,640 | ||||
Paid-in capital in excess of parcommon stock | 25,100 | 17,500 | ||||
Retained earnings | 123,350 | 89,350 | ||||
Total liabilities and stockholders equity | $911,760 | $868,826 |
CULLUMBER COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 | ||||||
Sales revenue | $1,170,900 | |||||
Cost of goods sold | 752,630 | |||||
418,270 | ||||||
Gross margin | ||||||
Operating expenses | ||||||
Selling expenses | $78,540 | |||||
Administrative expenses | 156,760 | |||||
Depreciation/Amortization expense | 40,210 | |||||
Total operating expenses | 275,510 | |||||
Income from operations | 142,760 | |||||
Other revenues/expenses | ||||||
Gain on sale of land | 7,960 | |||||
Gain on sale of short-term investment | 4,000 | |||||
Dividend revenue | 2,380 | |||||
Interest expense | (51,710 | ) | (37,370 | ) | ||
Income before taxes | 105,390 | |||||
Income tax expense | 39,370 | |||||
Net income | 66,020 | |||||
Dividends to common stockholders | (32,020 | ) | ||||
To retained earnings | $34,000 |
Prepare a statement of cash flows for Cullumber Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale.
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