Answered step by step
Verified Expert Solution
Link Copied!

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

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

9781119563099

Students also viewed these Accounting questions

Question

Write a brief essay on topic Salvation.

Answered: 1 week ago