Question 2

Comparative Balance Sheet
Shiner Corporation
Assets		Dec 31, 1996	Dec 31, 1995
Cash		$37,000	$49,000
Accounts Receivable		$26,000	$36,000
Prepaid Expenses		$6,000	$0
Land		$70,000	$0
Building	$200,000		$0
Accumulated Depreciation	$11,000	$189,000	$0
Equipment	$68,000		$0
Accumulated Depreciation	$10,000	$58,000	$0
Total Assets		$386,000	$85,000
Liabilities and Stockholder Equity
Accounts Payable		$40,000	$5,000
Bonds Payable		$150,000	$0
Common Stock		$60,000	$0
Retained Earnings		$136,000	$20,000
Total Liabilities and Stockholder Equity		$386,000	$85,000

Income Statement
Shiner Corporation
Revenue		$492,000
Operating Expenses	$269,000
Depreciation	$21,000	$290,000
Income before Income Taxes		$202,000
Income Tax Expense		$68,000
Net Income		$134,000

Additional information:

1. During the year Shiner Corporation paid dividends of $18,000.
2. Shiner also issued $150,000 in bonds.

Copy and complete the statement below: (15 marks)

Statement of Cash Flows
Cash Flow from Operating Activities
Net Income
Adjustments to reconcile net income to net cash
Depreciation Accts Receivable decrease
Prepaid Expense increase
Accts Payable Increase
Net cash provided from Operating Activities
Investing Activities
Land Purchase
Building Purchase
Equipment Purchase
Financing Activities
Dividend payment to shareholders
Issuance of Bonds Payable
Net Decrease in Cash
Cash Jan 1, 1996
Cash Dec 31, 1996