Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation:
Maris Corporation Income Statement Year Ended December 31, 20XX | ||
Sales | $5,300,000 | |
Cost of goods sold | 3,575,000 | |
Gross profits | 1,725,000 | |
Selling and administrative expense | 690,000 | |
Amortization expense | 210,000 | |
Operating income | 825,000 | |
Interest expense | 58,000 | |
Earnings before taxes | 767,000 | |
Taxes | 450,000 | |
Earnings after taxes | 317,000 | |
Preferred stock dividends | 25,000 | |
Earnings available to common shareholders | $292,000 | |
Shares outstanding | 146,000 | |
Earnings per share | $2.00 | |
Statement of Retained Earnings For the Year Ended December 31, 20XX | ||
Retained earnings, balance, January 1, 20XX | $900,000 | |
Add: Earnings available to common shareholders, 20XX | 292,000 | |
Deduct: Cash dividends declared and paid in 20XX | 150,000 | |
Retained earnings, balance, December 31, 20XX | $1,042,000 | |
Comparative Balance Sheets For 20XX and 20XW | |||||
December 31, 20XX | December 31, 20XW | ||||
Assets | |||||
Current assets: | |||||
Cash | $120,000 | $108,000 | |||
Accounts receivable (net) | 500,000 | 488,000 | |||
Inventory | 630,000 | 604,000 | |||
Prepaid expenses | 22,000 | 44,000 | |||
Total current assets | 1,272,000 | 1,244,000 | |||
Investments (long-term securities) | 120,000 | 125,000 | |||
Plant and equipment | 2,400,000 | 1,800,000 | |||
Less: Accumulated depreciation | 973,000 | 763,000 | |||
Net plant and equipment | 1,427,000 | 1,037,000 | |||
Total assets | $2,819,000 | $2,406,000 | |||
Liabilities and Shareholders Equity | |||||
Current liabilities: | |||||
Accounts payable | $438,000 | $220,000 | |||
Notes payable | 500,000 | 500,000 | |||
Accrued expenses | 49,000 | 66,000 | |||
Total current liabilities | 987,000 | 786,000 | |||
Long-term liabilities: | |||||
Bonds payable, 20XY | 170,000 | 100,000 | |||
Total liabilities | 1,157,000 | 886,000 | |||
Shareholders equity: | |||||
Preferred stock | 120,000 | 120,000 | |||
Common stock | 500,000 | 500,000 | |||
Retained earnings | 1,042,000 | 900,000 | |||
Total shareholders equity | 1,662,000 | 1,520,000 | |||
Total liabilities and shareholders equity | $2,819,000 | $2,406,000 | |||
Prepare a statement of cash flows for the Maris Corporation. (Amounts to be deducted should be indicated with a minus sign. Omit $ sign in your response.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started