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Required information The following information applies to the questions displayed below.] Hanks Company is developing its annual financial statements at December 31, current year. The
Required information The following information applies to the questions displayed below.] Hanks Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Fixed assets (net) Accounts payable Wages payable Note payable, long-term Common stock, no par Retained earnings $ 27,500 31,900 44,300 79,800 $183,500 $ 32,800 4,500 46,000 78,000 22,200 $183,500 $ 17,400 33,300 39,100 75,500 $165,300 $ 26,300 3,600 53,800 62,400 19,200 $ 165,300 Income statement for current year Sales Cost of goods sold Expenses Net income $ 95,000 (51,000) (37,000) $ 7,000 Additional data: a. Bought fixed assets for cash, $11,000. b. Paid $7,800 on the long-term note payable. c. Sold unissued common stock for $15,600 cash. d. Declared and paid a $4,000 cash dividend. e. Incurred the following expenses: depreciation, $6,700; wages, $14,000; taxes, $4,000; and other, $12,300. Required Information Cash 5,200 Merchandise inventory Operating Net income Depreciation expense Accounts receivable Accounts payable Wages payable 7,000 6,700 1,400 6,500 900 " Net cash provided by operating activities 17,300 Investing Purchased property, plant & equipment Net cash used in investing activities Financing Proceeds from stock issuance Payment of long-term note Payment of dividends Net cash provided by financing activities Net increase in cash and cash equivalents
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