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Fill out the worksheet. See attached Fred Slezak presented the following comparative balance sheet: FRED SLEZAK CORPORATION Comparative Balance Sheet December 31, 20X5 and 20X4
Fill out the worksheet. See attached
Fred Slezak presented the following comparative balance sheet: | ||||||
FRED SLEZAK CORPORATION | ||||||
Comparative Balance Sheet | ||||||
December 31, 20X5 and 20X4 | ||||||
Assets | 20X5 | 20X4 | ||||
Current assets | ||||||
Cash | $664,000 | $9,000 | ||||
Accounts receivable | 375,000 | 345,000 | ||||
Inventories | 150,000 | 160,000 | ||||
Prepaid expenses | 35,000 | 25,000 | ||||
Total current assets | $1,224,000 | $539,000 | ||||
Property, plant, & equipment | ||||||
Land | $300,000 | $400,000 | ||||
Building | 700,000 | 700,000 | ||||
Equipment | 530,000 | 450,000 | ||||
$1,530,000 | $1,550,000 | |||||
Less: Accumulated depreciation | (300,000) | (270,000) | ||||
Total property, plant, & equipment | $1,230,000 | $1,280,000 | ||||
Total assets | $2,454,000 | $1,819,000 | ||||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable | $112,000 | $119,000 | ||||
Interest payable | 2,000 | - | ||||
Total current liabilities | $114,000 | $119,000 | ||||
Long-term liabilities | ||||||
Long-term note payable | 80,000 | - | ||||
Total liabilities | $194,000 | $119,000 | ||||
Stockholders' equity | ||||||
Common stock ($1 par) | $700,000 | $600,000 | ||||
Paid-in capital in excess of par | 800,000 | 400,000 | ||||
Retained earnings | 760,000 | 700,000 | ||||
Total stockholders' equity | $2,260,000 | $1,700,000 | ||||
Total liabilities and equity | $2,454,000 | $1,819,000 | ||||
Additional information about transactions and events occurring in 20X5 follows: | ||||||
Dividends of $55,000 were declared and paid. | ||||||
Accounts payable and accounts receivable relate solely to purchases and sales of inventory. Prepaid items related only to advertising expenses. | ||||||
The decrease in land resulted from the sale of a parcel at a $45,000 loss. No land was purchased during the year. Equipment was purchased during the year in exchange for a promissory note payable. No equipment was sold. | ||||||
The increase in paid-in capital resulted from issuing additional shares for cash. | ||||||
The income statement for the year ending December 31, 20X5, included the following key amounts: | ||||||
Sales | $2,000,000 | |||||
Cost of goods sold | 1,200,000 | |||||
Salaries expense | 400,000 | |||||
Advertising expense | 150,000 | |||||
Depreciation expense | 30,000 | |||||
Utilities expense | 15,000 | |||||
Interest expense | 5,000 | |||||
Loss on sale of land | 45,000 | |||||
Income tax expense | 40,000 | |||||
Net income | 115,000 | |||||
Prepare Fred Slezak's statement of cash flows for the year ending 20X5. Use the indirect approach, and include required supplemental information about cash paid for interest and taxes. |
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