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QS 16-13 Computing cash from asset sales LO P3 CRUZ, INC. Comparative Balance Sheets December 31, 2019 2019 2018 Assets Cash $ 64,300 $ 16,100
QS 16-13 Computing cash from asset sales LO P3
CRUZ, INC. Comparative Balance Sheets December 31, 2019 | |||||||
2019 | 2018 | ||||||
Assets | |||||||
Cash | $ | 64,300 | $ | 16,100 | |||
Accounts receivable, net | 27,600 | 34,100 | |||||
Inventory | 57,700 | 64,000 | |||||
Prepaid expenses | 3,600 | 2,900 | |||||
Total current assets | 153,200 | 117,100 | |||||
Furniture | 72,600 | 82,200 | |||||
Accum. depreciationFurniture | (11,200 | ) | (6,200 | ) | |||
Total assets | $ | 214,600 | $ | 193,100 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 10,100 | $ | 14,200 | |||
Wages payable | 6,000 | 3,300 | |||||
Income taxes payable | 1,000 | 1,800 | |||||
Total current liabilities | 17,100 | 19,300 | |||||
Notes payable (long-term) | 20,600 | 47,700 | |||||
Total liabilities | 37,700 | 67,000 | |||||
Equity | |||||||
Common stock, $5 par value | 154,700 | 123,700 | |||||
Retained earnings | 22,200 | 2,400 | |||||
Total liabilities and equity | $ | 214,600 | $ | 193,100 | |||
CRUZ, INC. Income Statement For Year Ended December 31, 2019 | ||||||
Sales | $ | 330,500 | ||||
Cost of goods sold | 212,700 | |||||
Gross profit | 117,800 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 25,400 | ||||
Other expenses | 60,300 | 85,700 | ||||
Income before taxes | 32,100 | |||||
Income taxes expense | 11,700 | |||||
Net income | $ | 20,400 | ||||
Furniture costing $71,500 is sold at its book value in 2019. Acquisitions of furniture total $61,900 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Complete the general ledger accounts to calculate cash received from the sale of furniture.
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