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Kate Petusky prepared Addison Controls' balance sheet and income statement for 2016. Before she could complete the statement of cash flows, she had to leave
Kate Petusky prepared Addison Controls' balance sheet and income statement for 2016. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison's president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheet and income statement that Petusky prepared, as well as some notes she made: Addison Controls Income Statement For the Year Ended December 31, 2016 $127,900 69,800 Sales revenue Cost of goods sold Gross margin Selling expense 58,100 Administrative expense Salaries expense Depreciation expense 13,000 8,000 20,000 1,900 4,000 Interest expense Income before gain and taxes 46,900 11,200 900 800 Gain on sale of land Income tax expense Net income $11,300 Addison Controls Comparative Balance Sheets As of December 31 2016 Cash $5,100 Accounts receivable, net 6,300 Inventory 31,700 Total current assets 43,100 Property, plant, & equipment, net 211,500 Total assets $254,600 Accounts payable $3,400 Accrued expenses 600 Salaries payable 1,800 Taxes payable 2,100 Bonds payable 60,000 Total liabilities 67,900 Common stock 125,000 Retained earnings 61,700 Total stockholders' equity 186,700 Total liabilities & stockholders' equity $254,600 2015 $4,300 5,500 34,200 44,000 215,300 $259,300 $5,900 700 1,500 2,600 50,000 60,700 125,000 73,600 198,600 $259,300 . Equipment with an original cost of $35,000 was sold for $20,300. The book value of the equipment was $19,400. On June 1, 2016, the company purchased new equipment for cash at a cost of $17,500. At the end of the year, the company issued bonds payable for $10,000 cash. The bonds will mature on December 31, 2020. The company paid $23,200 in cash dividends for the year. (a1) Calculate the following amounts: a. Collections from customers b. Payments to suppliers C. Payments to employees Link to Video 2 d. Payments for operating expenses e. Payments for income taxes Click if you would like to Show Work for this question: Open Show Work
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