Problem 5 The financial statements for 2014 for Bing Corporation is presented on the attached schedules. In addition to the financial information contained in the attached statements the following supplementary information for Bing is also available. 1. During 2014 the company sold equipment with an original cost of $75,000, which was 40% depreciated, for a net selling price of S51,500 2. On April 3, 2014 investments costing $9,000 were sold for $7,300 3. During 2014 the company acquired new equipment for $ 1 48,000. 4. On July 17, 2014, the Company increased its capital structure by selling 6,000 shares of its S5 par common stock for S53 per share. 5. The company also borrowed S250,000 during the year. Required: Complete the attached cash flow worksheet. You must label each item on the worksheet. Bing Corporation Balance Sheets December 31, 2013 December 31, 2014 12/31/13 Assets Current Assets: Cash and cash equivalents Accounts receivable Inventory Investments Prepaid expenses 223,000 597,000 765,000 798,000 28,000 23,000 Total Current Assets 1,622,000 1,940,000 Property and Equipment: Land Building Machinery&Equipment 1.125,000 623,000 696,000 2.148,000 311,000 254,000 2.421,000 309,000 Accumulated depreciation-Equipment 1,583,000 1.724,000 Net Property and Equipment Total Assets 3,205,000 Liabilities and Stockholders Equity Current Liabilities: Current portion long-term debt Accounts payable Taxes Payable Accrued expenses 75,000 435,000 34,000 96,000 47.000 55.000 Total Current Liabilitie 640,00 Long-Term Liabilities 745.000 600,000 Long-Term Debt, less current portion Stockholders' Equity Common stock (S5 Par) Paid in capital Retained earnings 300,000 330,000 1,088,000 944,800 865,000 2362.80 Net Stockholders' Equity 1,965,000 Total Liabilities and Stockholders Equity 3.205,000 Bing Corporation Statements of Income and Retained Earnings For the Year Ended December 31, 2014 12/31/14 Net Sales 4,355,000 2,967,000 Cost of Goods Sold 1,388.000 Gross Profit Operating Expenses Selling expenses Marketing Expenses General & Administrative expenses Depreciation Expense Buildings Depreciation Expense Equipment Gain on Sale of Equipment Loss on Investments Interest Expense 416,000 237,000 391,000 77,000 85,000 (6,500) 1,700 31,000 1,232,200 Total Expenses Income before Tax 155,800 41.000 Income Taxes Net Income (Loss) Retained earnings, beginning of year 114,800 865.000 35.000 Less Dividends Retained Earnings, end of year 944.800
