Hello, Am having hard time completing the attached assignment,I did the trial balance,balance sheet and income statement but am not sure if it is right. can you please check it and also help me with the rest of the worksheet?
Instructions: Complete the each of following seven tabs in this MS Excel Workbook using the information contained in them: - Post the Journal Entries (to record the transactions of FirstRate Company during the final week of its fiscal year ended [FYE] Dec. 31, 20X5) to the consolidated Trial Balance of the company as of December 31, 20X5 - Consolidated Balance Sheet of the company as of December 31, 20X5 - Consolidated Income Statement, including comprehensive income, of the company for its FYE December 31, 20X5 - Statement of Cash Flows (SCF) Support Schedule, which provides information useful for preparing the SCF - Consolidated Statement of Cash Flows (SCF) of the company for its FYE December 31, 20X5 - Consolidated Statement of Changes in Shareholders' Equity of the company for its FYE December 31, 20X5 Complete the assignment by working "from left to right." That is, first, complete the Trial Balance, followed by the Balance Sheet, then the Income Statemet tab, etc. The background paper, Financial Statement Concepts and Financial Reporting , provides useful guidance for completing this assignment. The facilitator will grade this assignment, assigning up to 100 points for it as follows: Maximum - Trial Balance 15 - Balance sheet 20 - Income Statement 20 - Cash Flow Statement (SCF) and SCF Support Schedule 30 - Statement of Changes in Stockholders' Equity 15 Total points 100 Earned 15 points 20 20 30 15 100 FirstRate Company and subsidiaries General Journal (U.S. dollars in thousands) (Assumes company does NOT use special journals, such as sales journal, purchases journal, cash journal, or payroll journal) Date General ledger accounts / Explanation Debit Credit Dec. 31, 20X5 Dr. Accounts receivable, gross Cr. 800 Sales revenue (gross) 800 Explanation: To record credit sales for the last few days of 20X5 Dec. 31, 20X5 Dr. Cost of goods sold (COGS) - other Cr. 600 Inventory, at lower of cost or market 600 Explanation: To record cost of sales for the last few days of 20X5 Dec. 31, 20X5 Dr. Cash and cash equivalents Cr. 700 Accounts receivable, gross 700 Explanation: To record collections of accounts receivables for the last week of 20X5 Dec. 31, 20X5 Dr. Allowance for uncollectible accounts receivable Cr. 200 Accounts receivable, gross 200 Explanation: To record write-off of AR outstanding more than 6 months as of Dec. 28, 20X5 Dec. 31, 20X5 Dr. Selling and administrative expenses - other Cr. 200 Cash and cash equivalents 200 Explanation: To record payment of employee 20X5 bonuses, declared by board on Dec. 28, 20X5 Dec. 31, 20X5 Dr. Inventory, at lower of cost or market Cr. 500 Accounts payable 500 Explanation: To record purchases of raw materials during last week of 20X5 on credit (terms net 30 days) Total debits and credits 3,000 3,000 FirstRate Company and subsidiaries Take note of the (parentheses)! That is, enter credit entries WITH a negative sign! Trial Balance Fiscal Year 20X5 (U.S. dollars in thousands) FYE Dec. 31, 20X4 General ledger (GL) account Cash and cash equivalents FYTD Dec. 24, 20X5 Debit 2,100 600 Investment securities available for sale (market value) Debit 20,200 94,600 Debits (Credits) 21,700 78,000 JEs Final Week of 20X5 700 (200) FYE Dec. 31, 20X5 1,100 21,700 800 (200) Accounts receivable, gross Debit Allowance for uncollectible accounts receivable Credit (2,700) (3,800) 200 Inventory, at lower of cost or market Debit 137,600 160,100 500 Property, plant, and equipment, at cost Debit 292,500 266,700 266,700 Accumulated depreciation on PP&E Credit (129,700) (105,200) (105,200) Accounts payable Credit (81,600) (96,700) Accrued income taxes payable Credit (2,300) (1,800) (1,800) Dividends payable on common stock Credit (19,800) (16,000) (16,000) Bank note payable - current portion Credit (89,800) (113,900) (113,900) Bank note payable - noncurrent portion Credit (52,700) (55,400) (55,400) Accrued interest payable Credit (2,500) (3,100) (3,100) 6% Preferred stock, at par value Credit (20,000) (20,000) (20,000) Common stock, at par value Credit (42,700) (42,700) (42,700) Additional paid-in capital (APIC) Credit (8,300) (8,300) (8,300) Treasury stock Debit 1,100 1,100 1,100 200 (1,300) (1,300) (79,600) (79,600) (700) 94,500 (3,600) (600) (500) 160,000 (97,200) Accum. other comprehensive income (loss) Dr (Cr) Retained earnings - beginning of year Credit (82,500) Dividends declared on preferred stock - current year Debit 1,200 1,200 1,200 Dividends declared on common stock - current year Debit 19,800 16,000 16,000 Sales revenue (gross) Credit (674,200) (742,300) Sales returns and allowances Debit 12,800 16,300 16,300 Cost of goods sold (COGS) - depreciation Debit 11,400 10,000 10,000 Cost of goods sold (COGS) - other Debit 469,400 523,600 Selling and administrative expenses - depreciation Debit 600 500 Selling and administrative expenses - other Debit 109,200 122,900 Research and development (R&D) expenses Debit 23,800 24,000 24,000 Other operating expenses Debit 9,900 12,300 12,300 Gain on disposal of PP&E Credit - (1,100) (1,100) Loss on disposal of PP&E Debit - - - Interest on bank note Debit 9,900 12,500 12,500 Income tax provision Debit 9,100 7,100 7,100 Loss from discontinued oper., (before tax effect) Debit - - - Extraordinary loss (before tax effect) Debit - - - - - 3,000 (18,100) (14,200) 800 Total debits (credits) Net balance of nominal (or, temporary) accounts (800) 600 (743,100) 524,200 500 200 123,100 (3,000) - FirstRate Company and subsidiaries Consolidated Balance Sheet December 31, 20X5 (U.S. dollars in thousands) Assets: Current assets: cash and cash equivalents $ 1,100 Investement Securities available for sale, at market 21,700 Account Receivable,net allowance (3,600) Inventory,at lower of cost market 160,100 Total current assets 179,300 Property,plant,and equipment,cost 266,700 Less:Accumlated Depreciation (105,200) Property, plant, and equipment, net Total assets 161,500 $ 340,800 $ (97,200) Liabilities: Current liabilities: Account Payable Accrued income taxes payable (1,800) Dividends Payable on common Stock (1,600) Bank note Payable-Current Portion (113,900) Accrued interest payable (3,100) Total current liabilities (217,600) Bank note payable - noncurrent portion (55,400) Total liabilities (162,200) Stockholders' equity: Preferred Stock at par value (20,000) Common Stock arPar Value (42,700) Additional Paid-in Capital (8,300) Treasury Stock,At Cost 1,100 Accum.Other Comphensive income (1,300) Retained Earnings (79,600) Total stockholders' equity Total liabilities and stockholders' equity (150,800) $ (313,000) FirstRate Company and subsidiaries Consolidated Income Statement Fiscal year ended December 31, 20X5 (U.S. dollars in thousands, except per share amounts) Sales revenue (net of returns and allowances) $ Cost of Goods ( or services) Sold (759,400) 524,200 Gross Profit (1,283,600) Operating expenses: Selling and Adminstration expenses 123,100 Research and Development Expenses 24,000 Other operating expenses 12,300 Total operating expenses 159,400 Operating income (1,443,000) Non-operating items: Non-operating revenues and gains: Gains on disposal equipment (1,100) Non-operating expense and losses: Interest on bank note 12,500 Income before income taxes (1,455,500) Taxes on income from continuing Operations Net income 7,100 $ (1,462,600) Earnings per share: Net income Weighted average number of common shares outstanding Comprehensive income: Net income Other comprehensive income: Comprehensive income 42,563,000 FirstRate Company and subsidiaries Consolidated SCF Support Schedules (NOT for inclusion in U.S. GAAP-GPFS) Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) December 31, Working capital assets: Accounts receivable, net of allowance 20X5 $ 20X4 90,900 $ 75,300 $ Increase (decrease) 15,600 Use of cash Inventory, at lower of cost or market Working capital liabilities: Accounts payable Accrued income taxes payable Source of cash Accrued interest payable Net working capital $ 90,900 $ 75,300 $ 15,600 Net use of cash Non-working capital asset accounts Property, plant, and equipment (PP&E), at cost Balance at beginning of period, reported in December 31, 20X4 balance sheet $ Increase: Acquisitions of PP&E during 20X5 292,500 9,200 Decrease: Original cost of equipment sold in 20X5 (fully depreciated at date of disposal) (35,000) Balance at end of period, reported in December 31, 20X5 balance sheet $ 266,700 $ 129,700 Accumulated depreciation (of PP&E) Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Depreciation of PP&E for 20X5 10,500 Decrease: Accumulated depreciation on equipment sold in 20X5 (35,000) Balance at end of period, reported in December 31, 20X5 balance sheet $ 105,200 $ 19,800 Non-working capital liability accounts Dividends payable on common stock Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Dividends declared on common stock on December 15, 20X5 Decrease: Dividends paid during FYE December 31, 20X5 (19,800) Balance at end of period, reported in December 31, 20X5 balance sheet Bank note payable Current portion Balance at beg. of period, reported in Dec. 31, 20X4 balance sheet Increase: Additional borrowings during 20X5 ("plugged" from remaining info) 89,800 Non-current portion 52,700 Total 142,500 (142,500) Decrease: None (FirstRate made no repayments during 20X5) - Balance at end of period, reported in Dec. 31, 20X5 balance sheet - Stockholders' equity accounts Preferred stock, par value $100 per share Balance at beginning of period, reported in December 31, 20X4 balance sheet 20,000 Increase: None - Decrease: None (20,000) Balance at end of period, reported in December 31, 20X5 balance sheet Common stock, par value $1 per share Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: NO shares issued in 20X5, at par value Decrease: NA - see Treasury Stock, below Balance at end of period, reported in December 31, 20X5 balance sheet 42,700 (42,700) Additional paid-in capital (APIC) Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: NO shares issued in 20X5 Decrease: None (not applicable) 8,300 (8,300) Balance at end of period, reported in December 31, 20X5 balance sheet Treasury stock Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: NO shares repurchased in 20X5 Decrease: None (NO treasury shares re-sold in 20X5) 1,100 (1,100) - Balance at end of period, reported in December 31, 20X5 balance sheet Retained earnings Balance at beginning of period, reported in December 31, 20X4 balance sheet 79,600 Increase: Net income for FYE December 31, 20X5, as reported in the income statement 14,200 Decrease: Preferred dividends declared (and paid) in 20X5 Decrease: Common stock dividends declared (refer to analysis of dividends payable, above) Balance at end of period, reported in December 31, 20X5 balance sheet (17,200) 76,600 Determination of Supplemental Disclosures of Interest and Income Taxes Paid Accrued interest payable Balance at beginning of period, reported in December 31, 20X4 balance sheet 2,500 Increase: Interest on bank note, as reported in the income statement Decrease: Interest paid during 20X5 (inferred, or "plugged," from remaining info) (2,500) Balance at end of period, reported in December 31, 20X5 balance sheet Accrued income taxes payable Balance at beginning of period, reported in December 31, 20X4 balance sheet 2,300 Increase: Income tax provision (i.e., income tax expense) reported in the income statement: Decrease: Income taxes paid during 20X5 (inferred, or "plugged," from remaining info) Balance at end of period, reported in December 31, 20X5 balance sheet (2,300) FirstRate Company and subsidiaries Consolidated Statement of Cash Flows Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) Net income Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation of property, plant, and equipment Gain on disposal of equipment Loss on sale of equipment Changes in working capital accounts: Decrease (increase) in accounts receivable, net Decrease (increase) in inventory Increase (decrease) in accounts payable Increase (decrease) in accrued income taxes payable Increase (decrease) in accrued interest payable Net cash provided by (used in) operating activities Cash flows from investing activities: Proceeds on sale of equipment Acquisitions of property, plant, and equipment Net cash provided by (used in) investing activities Cash flows from financing activities: Net proceeds from issuance of common stock Repurchases of common stock Redemption of preferred stock Payment of dividends on preferred stock Payment of dividends on common stock Proceeds from borrowings under bank note agreement Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1, 20X5 Cash and cash equivalents, December 31, 20X5 Supplemental disclosures: FirstRate Company and subsidiaries Statement of Changes in Stockholders' Equity Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) Preferred stock Balance at January 1, 20X5 Common stock Additional paid-in capital Treasury stock Accum. other comprehensive income Retained earnings Total stockholders' equity $ - $ - Preferred stock redeemed Common stock issued Common stock repurchased Net income Other comprehensive income (loss) Dividends on common stock Dividends on preferred stock Balance at December 31, 20X5 Instructions: Complete the each of following seven tabs in this MS Excel Workbook using the information contained in them: - Post the Journal Entries (to record the transactions of FirstRate Company during the final week of its fiscal year ended [FYE] Dec. 31, 20X5) to the consolidated Trial Balance of the company as of December 31, 20X5 - Consolidated Balance Sheet of the company as of December 31, 20X5 - Consolidated Income Statement, including comprehensive income, of the company for its FYE December 31, 20X5 - Statement of Cash Flows (SCF) Support Schedule, which provides information useful for preparing the SCF - Consolidated Statement of Cash Flows (SCF) of the company for its FYE December 31, 20X5 - Consolidated Statement of Changes in Shareholders' Equity of the company for its FYE December 31, 20X5 Complete the assignment by working "from left to right." That is, first, complete the Trial Balance, followed by the Balance Sheet, then the Income Statemet tab, etc. The background paper, Financial Statement Concepts and Financial Reporting , provides useful guidance for completing this assignment. The facilitator will grade this assignment, assigning up to 100 points for it as follows: Maximum - Trial Balance 15 - Balance sheet 20 - Income Statement 20 - Cash Flow Statement (SCF) and SCF Support Schedule 30 - Statement of Changes in Stockholders' Equity 15 Total points 100 Earned 15 points 20 20 30 15 100 FirstRate Company and subsidiaries General Journal (U.S. dollars in thousands) (Assumes company does NOT use special journals, such as sales journal, purchases journal, cash journal, or payroll journal) Date General ledger accounts / Explanation Debit Credit Dec. 31, 20X5 Dr. Accounts receivable, gross Cr. 800 Sales revenue (gross) 800 Explanation: To record credit sales for the last few days of 20X5 Dec. 31, 20X5 Dr. Cost of goods sold (COGS) - other Cr. 600 Inventory, at lower of cost or market 600 Explanation: To record cost of sales for the last few days of 20X5 Dec. 31, 20X5 Dr. Cash and cash equivalents Cr. 700 Accounts receivable, gross 700 Explanation: To record collections of accounts receivables for the last week of 20X5 Dec. 31, 20X5 Dr. Allowance for uncollectible accounts receivable Cr. 200 Accounts receivable, gross 200 Explanation: To record write-off of AR outstanding more than 6 months as of Dec. 28, 20X5 Dec. 31, 20X5 Dr. Selling and administrative expenses - other Cr. 200 Cash and cash equivalents 200 Explanation: To record payment of employee 20X5 bonuses, declared by board on Dec. 28, 20X5 Dec. 31, 20X5 Dr. Inventory, at lower of cost or market Cr. 500 Accounts payable 500 Explanation: To record purchases of raw materials during last week of 20X5 on credit (terms net 30 days) Total debits and credits 3,000 3,000 FirstRate Company and subsidiaries Take note of the (parentheses)! That is, enter credit entries WITH a negative sign! Trial Balance Fiscal Year 20X5 (U.S. dollars in thousands) FYE Dec. 31, 20X4 General ledger (GL) account Cash and cash equivalents FYTD Dec. 24, 20X5 Debit 2,100 600 Investment securities available for sale (market value) Debit 20,200 94,600 Debits (Credits) 21,700 78,000 JEs Final Week of 20X5 700 (200) FYE Dec. 31, 20X5 1,100 21,700 800 (200) Accounts receivable, gross Debit Allowance for uncollectible accounts receivable Credit (2,700) (3,800) 200 Inventory, at lower of cost or market Debit 137,600 160,100 500 Property, plant, and equipment, at cost Debit 292,500 266,700 266,700 Accumulated depreciation on PP&E Credit (129,700) (105,200) (105,200) Accounts payable Credit (81,600) (96,700) Accrued income taxes payable Credit (2,300) (1,800) (1,800) Dividends payable on common stock Credit (19,800) (16,000) (16,000) Bank note payable - current portion Credit (89,800) (113,900) (113,900) Bank note payable - noncurrent portion Credit (52,700) (55,400) (55,400) Accrued interest payable Credit (2,500) (3,100) (3,100) 6% Preferred stock, at par value Credit (20,000) (20,000) (20,000) Common stock, at par value Credit (42,700) (42,700) (42,700) Additional paid-in capital (APIC) Credit (8,300) (8,300) (8,300) Treasury stock Debit 1,100 1,100 1,100 200 (1,300) (1,300) (79,600) (79,600) (700) 94,500 (3,600) (600) (500) 160,000 (97,200) Accum. other comprehensive income (loss) Dr (Cr) Retained earnings - beginning of year Credit (82,500) Dividends declared on preferred stock - current year Debit 1,200 1,200 1,200 Dividends declared on common stock - current year Debit 19,800 16,000 16,000 Sales revenue (gross) Credit (674,200) (742,300) Sales returns and allowances Debit 12,800 16,300 16,300 Cost of goods sold (COGS) - depreciation Debit 11,400 10,000 10,000 Cost of goods sold (COGS) - other Debit 469,400 523,600 Selling and administrative expenses - depreciation Debit 600 500 Selling and administrative expenses - other Debit 109,200 122,900 Research and development (R&D) expenses Debit 23,800 24,000 24,000 Other operating expenses Debit 9,900 12,300 12,300 Gain on disposal of PP&E Credit - (1,100) (1,100) Loss on disposal of PP&E Debit - - - Interest on bank note Debit 9,900 12,500 12,500 Income tax provision Debit 9,100 7,100 7,100 Loss from discontinued oper., (before tax effect) Debit - - - Extraordinary loss (before tax effect) Debit - - - - - 3,000 (18,100) (14,200) 800 Total debits (credits) Net balance of nominal (or, temporary) accounts (800) 600 (743,100) 524,200 500 200 123,100 (3,000) - FirstRate Company and subsidiaries Consolidated Balance Sheet December 31, 20X5 (U.S. dollars in thousands) Assets: Current assets: cash and cash equivalents $ 1,100 Investement Securities available for sale, at market 21,700 Account Receivable,net allowance (3,600) Inventory,at lower of cost market 160,100 Total current assets 179,300 Property,plant,and equipment,cost 266,700 Less:Accumlated Depreciation (105,200) Property, plant, and equipment, net Total assets 161,500 $ 340,800 $ (97,200) Liabilities: Current liabilities: Account Payable Accrued income taxes payable (1,800) Dividends Payable on common Stock (1,600) Bank note Payable-Current Portion (113,900) Accrued interest payable (3,100) Total current liabilities (217,600) Bank note payable - noncurrent portion (55,400) Total liabilities (162,200) Stockholders' equity: Preferred Stock at par value (20,000) Common Stock arPar Value (42,700) Additional Paid-in Capital (8,300) Treasury Stock,At Cost 1,100 Accum.Other Comphensive income (1,300) Retained Earnings (79,600) Total stockholders' equity Total liabilities and stockholders' equity (150,800) $ (313,000) FirstRate Company and subsidiaries Consolidated Income Statement Fiscal year ended December 31, 20X5 (U.S. dollars in thousands, except per share amounts) Sales revenue (net of returns and allowances) $ Cost of Goods ( or services) Sold (759,400) 524,200 Gross Profit (1,283,600) Operating expenses: Selling and Adminstration expenses 123,100 Research and Development Expenses 24,000 Other operating expenses 12,300 Total operating expenses 159,400 Operating income (1,443,000) Non-operating items: Non-operating revenues and gains: Gains on disposal equipment (1,100) Non-operating expense and losses: Interest on bank note 12,500 Income before income taxes (1,455,500) Taxes on income from continuing Operations Net income 7,100 $ (1,462,600) Earnings per share: Net income Weighted average number of common shares outstanding Comprehensive income: Net income Other comprehensive income: Comprehensive income 42,563,000 FirstRate Company and subsidiaries Consolidated SCF Support Schedules (NOT for inclusion in U.S. GAAP-GPFS) Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) December 31, Working capital assets: Accounts receivable, net of allowance 20X5 $ 20X4 90,900 $ 75,300 $ Increase (decrease) 15,600 Use of cash Inventory, at lower of cost or market Working capital liabilities: Accounts payable Accrued income taxes payable Source of cash Accrued interest payable Net working capital $ 90,900 $ 75,300 $ 15,600 Net use of cash Non-working capital asset accounts Property, plant, and equipment (PP&E), at cost Balance at beginning of period, reported in December 31, 20X4 balance sheet $ Increase: Acquisitions of PP&E during 20X5 292,500 9,200 Decrease: Original cost of equipment sold in 20X5 (fully depreciated at date of disposal) (35,000) Balance at end of period, reported in December 31, 20X5 balance sheet $ 266,700 $ 129,700 Accumulated depreciation (of PP&E) Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Depreciation of PP&E for 20X5 10,500 Decrease: Accumulated depreciation on equipment sold in 20X5 (35,000) Balance at end of period, reported in December 31, 20X5 balance sheet $ 105,200 $ 19,800 Non-working capital liability accounts Dividends payable on common stock Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: Dividends declared on common stock on December 15, 20X5 Decrease: Dividends paid during FYE December 31, 20X5 (19,800) Balance at end of period, reported in December 31, 20X5 balance sheet Bank note payable Current portion Balance at beg. of period, reported in Dec. 31, 20X4 balance sheet Increase: Additional borrowings during 20X5 ("plugged" from remaining info) 89,800 Non-current portion 52,700 Total 142,500 (142,500) Decrease: None (FirstRate made no repayments during 20X5) - Balance at end of period, reported in Dec. 31, 20X5 balance sheet - Stockholders' equity accounts Preferred stock, par value $100 per share Balance at beginning of period, reported in December 31, 20X4 balance sheet 20,000 Increase: None - Decrease: None (20,000) Balance at end of period, reported in December 31, 20X5 balance sheet Common stock, par value $1 per share Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: NO shares issued in 20X5, at par value Decrease: NA - see Treasury Stock, below Balance at end of period, reported in December 31, 20X5 balance sheet 42,700 (42,700) Additional paid-in capital (APIC) Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: NO shares issued in 20X5 Decrease: None (not applicable) 8,300 (8,300) Balance at end of period, reported in December 31, 20X5 balance sheet Treasury stock Balance at beginning of period, reported in December 31, 20X4 balance sheet Increase: NO shares repurchased in 20X5 Decrease: None (NO treasury shares re-sold in 20X5) 1,100 (1,100) - Balance at end of period, reported in December 31, 20X5 balance sheet Retained earnings Balance at beginning of period, reported in December 31, 20X4 balance sheet 79,600 Increase: Net income for FYE December 31, 20X5, as reported in the income statement 14,200 Decrease: Preferred dividends declared (and paid) in 20X5 Decrease: Common stock dividends declared (refer to analysis of dividends payable, above) Balance at end of period, reported in December 31, 20X5 balance sheet (17,200) 76,600 Determination of Supplemental Disclosures of Interest and Income Taxes Paid Accrued interest payable Balance at beginning of period, reported in December 31, 20X4 balance sheet 2,500 Increase: Interest on bank note, as reported in the income statement Decrease: Interest paid during 20X5 (inferred, or "plugged," from remaining info) (2,500) Balance at end of period, reported in December 31, 20X5 balance sheet Accrued income taxes payable Balance at beginning of period, reported in December 31, 20X4 balance sheet 2,300 Increase: Income tax provision (i.e., income tax expense) reported in the income statement: Decrease: Income taxes paid during 20X5 (inferred, or "plugged," from remaining info) Balance at end of period, reported in December 31, 20X5 balance sheet (2,300) FirstRate Company and subsidiaries Consolidated Statement of Cash Flows Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) Net income Adjustments to reconcile net income to cash flows provided by operating activities: Depreciation of property, plant, and equipment Gain on disposal of equipment Loss on sale of equipment Changes in working capital accounts: Decrease (increase) in accounts receivable, net Decrease (increase) in inventory Increase (decrease) in accounts payable Increase (decrease) in accrued income taxes payable Increase (decrease) in accrued interest payable Net cash provided by (used in) operating activities Cash flows from investing activities: Proceeds on sale of equipment Acquisitions of property, plant, and equipment Net cash provided by (used in) investing activities Cash flows from financing activities: Net proceeds from issuance of common stock Repurchases of common stock Redemption of preferred stock Payment of dividends on preferred stock Payment of dividends on common stock Proceeds from borrowings under bank note agreement Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, January 1, 20X5 Cash and cash equivalents, December 31, 20X5 Supplemental disclosures: FirstRate Company and subsidiaries Statement of Changes in Stockholders' Equity Fiscal year ended December 31, 20X5 (U.S. dollars in thousands) Preferred stock Balance at January 1, 20X5 Common stock Additional paid-in capital Treasury stock Accum. other comprehensive income Retained earnings Total stockholders' equity $ - $ - Preferred stock redeemed Common stock issued Common stock repurchased Net income Other comprehensive income (loss) Dividends on common stock Dividends on preferred stock Balance at December 31, 20X5
