*part A & part B*

Names of Accounts: (below are the correct accounts terms that apply to this assignment)

Interest

Inventory Purchased

operating expenses

paid to purchase equipment

paid to purchase marketable securities

payment of dividends

proceeds from bonds issued

proceeds from preferred stock issue

proceeds from sale of equipment

proceeds from sale of land

proceeds from sale of marketable securities

proceeds from sale of treasury stock

repayment of loan

Sales

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The following financial statements and information are available for Vernon Industries Inc. Balance Sheets As of December 31 Year 3 Year 2 162,700 105,600 188,500 296,800 687,400 (307,100) 82,400 1,216,300 $ 123, 100 87,300 174,200 222,500 492,800 (237, 400) 118,200 980, 700 $ Assets Cash Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation Land Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable Total liabilities Stockholders' equity Common stock, no par Preferred stock, $50 par Paid-in capital in excess of par-Preferred stock Total paid-In capital Retained earnings Less: Treasury stock Total stockholders' equity Total liabilities and stockholders' equity 38,800 229,600 205, 400 473, 800 $ 68, 600 252,600 1 02, 700 4 23,900 242,700 112,900 36, 900 392,500 388,900 (38,900) 742,500 $1,216,300 202,900 92,900 30, 900 326,700 299,000 (68, 900) 556, 800 $980, 700 $1,052,400 (768, 800) 283, 600 Income Statement For the Year Ended December 31, Year 3 Sales revenue Cost of goods sold Gros3 profit Operating expenses Supplies expense $23,000 Salaries expenses 94,500 Depreciation expense 92,700 Total operating expenses Operating income Nonoperating items Interest expenses Gain from the sale of marketable securities Gain from the sale of land and equipment Net income (210, 200) 73,400 (14, 400) 35,000 20, 600 114,600 $ 1. Sold land that cost $35,800 for $39,800. 2. Sold equipment that cost $27,400 and had accumulated depreciation of $23,000 for $21,000. 3. Purchased new equipment for $222,000. 4. Sold marketable securities that were classified as available for sale and that cost $46,300 for $81,300. 5. Purchased new marketable securities, classified as available-for-sale, for $120,600. 6. Paid $23,000 on the principal of the long-term note. 7. Paid off a $102,700 bond issue and issued new bonds for $205,400. 8. Sold 100 shares of treasury stock at its cost. 9. Issued some new common stock 10. Issued some new $50 par preferred stock. 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends) a. Prepare the statement of cash flows for Vernon Industries using direct method. (Amounts to be deducted and cash outflows should be indicated by a minus sign.) VERNON INDUSTRIES, INC. Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Cash Receipts from: Sales $ 1,034 1001 $ 1,034 100 Total cash inflows Cash payments for: Operating expenses Total cash outflows 1,034 100 Cash flows from investing activities: Proceeds from sale of land Proceeds from sale of equipment Cash flows from financing activities: - 0 1,034,100 Ending cash balance $ 1,034,100 b-1. What is the cost per share of the treasury stock? b-2. What was the issue price per share of the preferred stock? b-3. What was the book value of the equipment sold? b.1. b-2. b-3. Cost per share of the treasury stock Issue price of the preferred stock Book value of equipment per share