Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help. The following financial statements and information are available for Blythe Industries, Incorporated. Balance Sheets As of December 31 Year 2 Year 1 $190,200

Please help.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following financial statements and information are available for Blythe Industries, Incorporated. Balance Sheets As of December 31 Year 2 Year 1 $190,200 122,500 221,300 299,000 772,000 (368,000) 95,000 $1,332,000 $143,200 101,000 204,000 235,000 582,000 (285,000) 142,000 $1,122,200 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 $43,200 273,000 237,000 553,200 $78,600 297,000 119,000 494,600 285,800 131,000 39,600 456,400 357,400 (35,000) 778, 800 $1,332,000 237,000 119,000 31,800 387,800 286,800 (47,000) 627,600 $1,122,200 $1,247,000 (910,000) 337,000 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreciation expense Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipotent Net income $24,200 109,000 107.000 (240,200) 96, 800 (19,000) 28,000 14,000 $119,800 Additional Information 1. Sold land that cost $47,000 for $52,000, 2. Sold equipment that cost $36,000 and had accumulated depreciation of $24,000 for $21,000. 3. Purchased new equipment for $226,000. 4. Sold marketable securities that were classified as avallable-for-sale and that cost $55,000 for $83,000, 5. Purchased new marketable securities, classified as available-for-sale, for $119,000. 6. Paid $24,000 on the principal of the long-term note. 7. Paid off a $119,000 bond issue and issued new bonds for $237,000. 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. Pald dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Required Organize the class into three sections and divide each section into groups of three to five students. Assign each section of groups an activity section of the statement of cash flows (operating activities, Investing activities, or financing activities) Group Task Prepare your assigned portion of the statement of cash flows using the direct method. Have a representative of your section put your activity section of the statement of cash flows on the board. As each section adds its information on the board, the full statement of cash flows will be presented. Class Discussion Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions: a. What is the cost per share of the treasury stock sold? b. What was the price per share of the newly issued preferred stock? c. What was the book value of the equipment sold? BLYTHE INDUSTRIES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash Receipts from: Total cash inflows Cash payments for: Total cash outflows Cash flows from investing activities: Cash flows from financing activities: Total cash inflows Cash payments for: Total cash outflows Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Statement of Cash Flows Req A to C> Complete this question by entering your answers in the tabs below. Statement of Cash Flows Reg A to C a. What is the cost per share of the treasury stock sold? b. What was the price per share of the newly issued preferred stock? (Round final answer to the nearest whole number) c. What was the book value of the equipment sold? a. Cost of treasury stock sold per share b. issue price of preferred stock per share c Book value of equipment sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of Accounting Information In Markets

Authors: Peter Ove Christensen, Gerald Feltham

2nd Edition

1402072295, 9781402072291

More Books

Students also viewed these Accounting questions