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Question #8. Below is the balance sheet of Brown Inc. for the years 2017 and 2018. December 31, 2018 Dec. 31, 2017 Cash . $

Question #8.

Below is the balance sheet of Brown Inc. for the years 2017 and 2018.

December 31, 2018

Dec. 31, 2017

Cash .

$ 6,000

$ 9,000

Accounts receivable ..

10,000

12,000

Merchandise inventory .

29,000

18,000

Prepaid rent

6,000

4,000

Equipment ..

110,000

90,000

Accumulated depreciation

(40,000)

(23,000)

Total assets

$121,000

$110,000

Accounts payable .

$ 9,000

$ 25,000

Dividends payable

6,000

4,000

Common stock .

38,000

30,000

Additional Paid in Capital, common stock

Retained earnings

9,000

59,000

2,000

49,000

Total liabilities and stockholders equity

$121,000

$110,000

Other information:

No equipment was sold or retired during 2018. Browns net income for 2018 was $83,000.

Use the information above & calculate:

  1. Did Brown Inc. buy any equipment in 2018? How much?
  2. Determine the amount of depreciation expense charged/recognized for the year 2018
  3. How of much cash was paid for depreciation in 2018?
  4. How much was the amount of dividends declared & paid during the year 2018?

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