P1-30
Compute the missing amounts in the following financial statements.
*Hint: Property, plant and equipment (PPE), cost = Prior year balance of PPE, cost + Purchases of PPE - Sales of PPE. See Statement of Cash Flow below for Purchases of PPE in 2012. There were no sales of PPE in 2012.
Balance Sheet at	31-Dec-11	31-Dec-12		Income Statement for Year Ending
Current assets
Cash	10,000	$25,000			31-Dec-12
Marketable securities	3,000	5,000		Sales revenue
Accounts receivable	12,000	37,000		Cost of sales	123,000
Merchandise inventory	52,000	23,000		Gross profit	162,000
Prepaid advertising	15,000	18,000		Expenses:
Total current assets	92,000	108,000		Wages	15,000
Property, plant and equipment (PPE), cost*	175,000			Advertising	18,000
Accumulated depreciation	-35,000	-63,000		Depreciation
Land	15,000			Amortization	4,000
Intangible assets	103,000	7,000		Total expenses	65,000
Total assets	$258,000	$342,000		Operating profit	97,000
				Interest
Current liabilities				Income (loss) before taxes	88,000
Accounts payable	$12,000	$23,000		Tax expense	35,000
Wages payable		18,000		Net income	53,000
Interest payable	6,000	5,000
Dividends payable	3,000
Taxes payable	17,000	12,000
Total current liabilities	43,000	60,000
Long-term debt		86,000
Shareholders equity
Common stock	150,000	172,000
Retained earnings	23,000	32,000
Treasury stock	-10,000
Total liabilities and shareholders equity	$258,000	$342,000
Statement of Cash Flow for Year Ended	31-Dec-12
Cash flow from operating activities
Cash collections from customers	$260,000
Cash payments for:
Inventory	-83,000
Wages	-2,000
Taxes	-40,000
Interest	-10,000
Advertising
Net cash provided by operations	104,000
Cash flow from investing activities
(Purchases) sale of property, plant and equipment	-111,000
(Purchase) sale of marketable securities
(Purchase) sale of land	11,000
Net cash provided by investing activities	-102,000
Cash flow from financing activities
Issuance (repayment) of long-term debt	34,000
Payment of dividend	-45,000
Issuance (repurchase) of common stock
(Purchase) sale of treasury stock	2,000
Net cash provided by financing activities	13,000
Net cash flow

P1-30
Compute the missing amounts in the following financial statements.
*Hint: Property, plant and equipment (PPE), cost = Prior year balance of PPE, cost + Purchases of PPE - Sales of PPE. See Statement of Cash Flow below for Purchases of PPE in 2012. There were no sales of PPE in 2012.
Balance Sheet at	31-Dec-11	31-Dec-12		Income Statement for Year Ending
Current assets
Cash	10,000	$25,000			31-Dec-12
Marketable securities	3,000	5,000		Sales revenue
Accounts receivable	12,000	37,000		Cost of sales	123,000
Merchandise inventory	52,000	23,000		Gross profit	162,000
Prepaid advertising	15,000	18,000		Expenses:
Total current assets	92,000	108,000		Wages	15,000
Property, plant and equipment (PPE), cost*	175,000			Advertising	18,000
Accumulated depreciation	-35,000	-63,000		Depreciation
Land	15,000			Amortization	4,000
Intangible assets	103,000	7,000		Total expenses	65,000
Total assets	$258,000	$342,000		Operating profit	97,000
				Interest
Current liabilities				Income (loss) before taxes	88,000
Accounts payable	$12,000	$23,000		Tax expense	35,000
Wages payable		18,000		Net income	53,000
Interest payable	6,000	5,000
Dividends payable	3,000
Taxes payable	17,000	12,000
Total current liabilities	43,000	60,000
Long-term debt		86,000
Shareholders equity
Common stock	150,000	172,000
Retained earnings	23,000	32,000
Treasury stock	-10,000
Total liabilities and shareholders equity	$258,000	$342,000
Statement of Cash Flow for Year Ended	31-Dec-12
Cash flow from operating activities
Cash collections from customers	$260,000
Cash payments for:
Inventory	-83,000
Wages	-2,000
Taxes	-40,000
Interest	-10,000
Advertising
Net cash provided by operations	104,000
Cash flow from investing activities
(Purchases) sale of property, plant and equipment	-111,000
(Purchase) sale of marketable securities
(Purchase) sale of land	11,000
Net cash provided by investing activities	-102,000
Cash flow from financing activities
Issuance (repayment) of long-term debt	34,000
Payment of dividend	-45,000
Issuance (repurchase) of common stock
(Purchase) sale of treasury stock	2,000
Net cash provided by financing activities	13,000
Net cash flow