Question
Question 1 Riverbed Inc., a greeting card company, had the following statements prepared as of December 31, 2017. RIVERBED INC. COMPARATIVE BALANCE SHEET AS OF
Question 1
Riverbed Inc., a greeting card company, had the following statements prepared as of December 31, 2017.
RIVERBED INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016
12/31/17
12/31/16
Cash$6,100
$7,100
Accounts receivable61,500
51,000
Short-term debt investments (available-for-sale)34,800
17,900
Inventory39,800
59,900
Prepaid rent5,000
4,000
Equipment155,200
129,900
Accumulated depreciationequipment(35,200
)
(24,800
)
Copyrights45,800
49,800
Total assets$313,000
$294,800
Accounts payable$45,800
$39,800
Income taxes payable4,100
6,000
Salaries and wages payable7,900
3,900
Short-term loans payable8,000
9,900
Long-term loans payable60,100
68,900
Common stock, $10 par100,000
100,000
Contributed capital, common stock30,000
30,000
Retained earnings57,100
36,300
Total liabilities & stockholders' equity$313,000
$294,800
RIVERBED INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2017
Sales revenue$338,200
Cost of goods sold174,500
Gross profit163,700
Operating expenses120,800
Operating income42,900
Interest expense$11,400
Gain on sale of equipment2,000
9,400
Income before tax33,500
Income tax expense6,700
Net income$26,800
Additional information:
1.Dividends in the amount of $6,000were declared and paid during 2017.2.Depreciation expense and amortization expense are included in operating expenses.3.No unrealized gains or losses have occurred on the investments during the year.4.Equipment that had a cost of $20,200and was 70% depreciated was sold during 2017.
Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
RIVERBED INC.
Statement of Cash Flows
December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
EAT_1414587029224_1_1183836017270283
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