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Marcus Inc. reported the following Income Statement for 2018 and the comparative balance sheet for 2018 and 2017, along with additional information for 2018. Prepare
Marcus Inc. reported the following Income Statement for 2018 and the comparative balance sheet for 2018 and 2017, along with additional information for 2018. | ||||||
Prepare Maynard's statement of cash flows for the year ended December 31, 2018 using the indirect method and follow the proper format. | ||||||
MARCUS INC. | ||||||
Comparative Balance Sheets | ||||||
12/31/2018 | ||||||
Assets | 2018 | 2017 | ||||
Debit Accounts | ||||||
Cash | 42,000 | 33,750 | ||||
Accounts receivable | 70,500 | 60,000 | ||||
Inventory | 30,000 | 24,000 | ||||
Investments (available for sale) | 22,250 | 38,500 | ||||
Machinery | 30,000 | 18,750 | ||||
Buildings | 67,500 | 56,250 | ||||
Land | 7,500 | 7,500 | ||||
269,750 | 238,750 | |||||
Credit Accounts | ||||||
Allowance for Doubtful Accounts | 2,250 | 1,500 | ||||
Accumulated depreciation - Machinery | 5,625 | 2,250 | ||||
Accumulated depreciation - Buildings | 13,500 | 9,000 | ||||
Accounts payable | 35,000 | 24,750 | ||||
Accrued payables | 3,375 | 2,625 | ||||
Long-Term Notes Payable | 21,000 | 31,000 | ||||
Common stock - no-par | 150,000 | 125,000 | ||||
Retained earnings | 39,000 | 42,625 | ||||
Total liabilities and stockholders' equity | 269,750 | 238,750 | ||||
Marcus' 2018 income statement follows (ignoring taxes) | ||||||
Sales revenue | $540,000 | |||||
Less: Cost of goods sold | 380,000 | |||||
Gross Margin | 160,000 | |||||
Less: Operating expenses (includes $8625 depreciation and $5,400 bad debts) | 120,450 | |||||
Income from operations | 39,550 | |||||
Other: Gain on sale of innvestments | 3,750 | |||||
Loss on sale of machinery | -800 | |||||
2,950 | ||||||
Net income | 42,500 | |||||
Additional information for 2018: | ||||||
1. Net income for the year was $42,500 | ||||||
2. Cash dividend declared and paid during the year were $21,125 | ||||||
3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. | ||||||
4. Investments that cost $25,000 were sold during the year for $28,750 | ||||||
5. Machinery that cost $3,750, on which $750 of depreciation had accumulated was sold for $2,200 | ||||||
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