Question
Please help me with answering the questions for Managerial Accounting on the Balance Sheet :) Tao Zhang the owner of the Zhang, a small lodging
Please help me with answering the questions for Managerial Accounting on the Balance Sheet :)
Tao Zhang the owner of the Zhang, a small lodging operation, has asked for your help in answering a few selected questions. He is able to present you with the condensed balance sheets and some additional information, as follows:
The Zhang Condensed Balance Sheets December 31, 20X1 and 20X2
| ||
| 20X1 | 20X2 |
Cash | $ 10,000 | $ 12,000 |
Accounts receivable | 26,500 | 19,500 |
Investments (long-term) | 10,000 | 10,000 |
Equipment | 200,000 | 350,000 |
Accumulated depreciation | (20,000) | (80,000) |
Total assets | $ 226,500 | $ 311,500 |
Current liabilities: |
|
|
Accounts payable | $ 13,000 | $ 19,000 |
Mortgage payable (current) | 10,000 | 15,000 |
Dividends payable | 10,000 | 17,000 |
Noncurrent liabilities: |
|
|
Mortgage payable | 70,000 | 110,000 |
Common stock | 60,000 | 100,000 |
Treasury stock | (10,000) | (30,000) |
Retained earnings | 73,500 | 80,500 |
Total liabilities and owners equity | $ 226,500 | $ 311,500 |
Additional information regarding activities for 20X2:
a. Equipment costing $20,000 and depreciated by $10,000 was sold for $12,000.
b. Long-term investments costing $10,000 were sold for $8,000.
c. Common stock was sold and long-term debt was borrowed during 20X2. There were no noncash financing or investing activities during 20X2.
d. Dividends declared in 20X2 were not paid in 20X2.
e. Assume all current liabilities are paid on a timely basis.
f. Assume retained earnings is affected only by net earnings and dividends declared.
Answer the following questions.
1. What was the amount of common stock at the beginning of 20X1?
2. What amount of investments were purchased during 20X2?
3. What was the amount of net working capital at the end of 20X1?
4. What was the net book value of fixed assets at the end of 20X1?
5. What was the amount of the mortgage payment, excluding interest expense, during 20X2?
6. What were the net earnings for 20X2?
7. What were the amount of dividends paid during 20X2?
8. How much of Zhangs stock was repurchased during 20X2?
9. What was the depreciation expense for 20X2?
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