Question
Net Income $ 640,800 Requirement 3. Prepare MRRC's balance sheet at December 31,2016. Midwestern Reserve Rare Coins Balance Sheet December 31, 2016 Assets Liabilities Current
| Net Income |
| $640,800 | ||
Requirement 3. Prepare MRRC's balance sheet at December 31,2016.
Midwestern Reserve Rare Coins
Balance Sheet
December 31, 2016
Assets
Liabilities
Current Assets:
Current Liabilities:
Cash
$784,250
Accounts Payable
$90,000
Accounts Receivable
162,750
Salaries Payable
7,000
Merchandise Inventory
178,000
Total Current Liabilities
97,000
Total Current Assets
1,125,000
Stockholders' Equity
Plant Assets:
Common Stock
475,000
Store Fixtures
$56,000
Retained Earnings
597,800
Less: Accumulated Depreciation
(11,200)
44,800
Total Stockholders' Equity
1,072,800
Total Assets
$1,169,800
Total Liabilities and Stockholders' Equity
$1,169,800
Requirement 4. Prepare MRRC's statement of cash flows using the indirect method for the year ended December 31, 2016.
(Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero. Enter "0" for a zero cash balance.) Complete the statement one section at a time, beginning with the cash flows from operating activities.
Midwestern Reserve Rare Coins
Statement of Cash Flows
Year Ended December 31, 2016
Cash Flows from Operating Activities:
Net Income
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used for) Operating Activities:
Net Cash Provided by (Used for) Operating Activities
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
8th edition
1111534918, 978-1111534912
