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I need to create a statement of cash flow from the following information. The balance sheet accounts of Rockwall Corporation at the beginning and end
I need to create a statement of cash flow from the following information.
The balance sheet accounts of Rockwall Corporation at the beginning and end of 2016 are: | ||
31-Dec-16 | 1-Jan-16 | |
Cash | $99,435 | $110,700 |
Accounts Receivable | $424,600 | $380,900 |
Inventory | $635,740 | $576,475 |
Prepaid Expenses | $20,000 | $12,000 |
Investment in subsidiary | $200,000 | $0 |
Held to Maturity Debt Securities | $16,460 | $14,850 |
Land | $100,000 | $100,000 |
Buildings | $525,000 | $400,000 |
Equipment | $381,000 | $290,000 |
Patents | $86,000 | $70,000 |
Trademarks | $25,000 | $35,000 |
Bond Discount and issue costs | $1,165 | $6,075 |
Total Debits | $2,514,400 | $1,996,000 |
Accounts payable | $534,000 | $508,000 |
Income Taxes payable | $68,000 | $34,500 |
Salaries and wages payable | $73,500 | $12,900 |
Allowance for doubtful accounts | $25,000 | $23,000 |
Accumulated depreciation - buildings | $248,000 | $230,000 |
Accumulated depreciation - equipment | $160,000 | $103,000 |
Long-term notes payable | $75,000 | $75,000 |
Bonds payable | $400,000 | $300,000 |
Premium on bonds payable | $7,762 | $0 |
Common stock | $150,000 | $125,000 |
Paid-in capital in excess of par-common stock | $568,000 | $418,000 |
Retained earnings | $205,138 | $166,600 |
Total credits | $2,514,400 | $1,996,000 |
You also have the following information: | ||
1. On November 1, 2016, 25,000 shares of $1 par stock were sold for $175,000. | ||
2. A patent was purchased for $31,000 | ||
3. During the year, equipment that had a cost basis of $26,400 and on which there was accumulated depreciation | ||
of $5,800 was sold for $15,000. No other plant assets were sold during the year. | ||
4. The 10%, $300,000 40-year bonds were dated and issued on January 2, 2003. Interest was payable | ||
on June 30 and December 31. They were sold originally at 97. These bonds were retired at 101 | ||
plus accrued interest on May 31, 2016. | ||
5. The 6%, $400,000 20-year bonds were dated January 1, 2016, and were sold on May 31 at 102 | ||
plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $1,200. | ||
6. Rockwall Corporation acquired 60% control in Jones Company on January 2, 2016, for $146,000. | ||
The income statement of Jones Company for 2016 shows a net income of $90,000. | ||
7. Extraordinary repairs to buildings of $12,600 were charged to Accumulated Depreciation Buildings. | ||
8. Interest paid in 2016 was $31,000 and income taxes paid were $38,000. | ||
9. Net income for the year totaled $76,538. |
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