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SANDHILL INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale)
SANDHILL INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 | ||||||
12/31/17 | 12/31/16 | |||||
Cash | $6,000 | $7,100 | ||||
Accounts receivable | 61,400 | 51,500 | ||||
Short-term debt investments (available-for-sale) | 34,600 | 18,000 | ||||
Inventory | 40,300 | 60,200 | ||||
Prepaid rent | 4,900 | 4,000 | ||||
Equipment | 152,400 | 130,600 | ||||
Accumulated depreciationequipment | (34,800 | ) | (25,200 | ) | ||
Copyrights | 45,700 | 49,800 | ||||
Total assets | $310,500 | $296,000 | ||||
Accounts payable | $46,100 | $40,300 | ||||
Income taxes payable | 4,000 | 6,000 | ||||
Salaries and wages payable | 7,900 | 4,000 | ||||
Short-term loans payable | 8,100 | 10,000 | ||||
Long-term loans payable | 59,700 | 69,600 | ||||
Common stock, $10 par | 100,000 | 100,000 | ||||
Contributed capital, common stock | 30,000 | 30,000 | ||||
Retained earnings | 54,700 | 36,100 | ||||
Total liabilities & stockholders equity | $310,500 | $296,000 |
SANDHILL INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 | ||||
Sales revenue | $333,450 | |||
Cost of goods sold | 174,300 | |||
Gross profit | 159,150 | |||
Operating expenses | 118,800 | |||
Operating income | 40,350 | |||
Interest expense | $11,600 | |||
Gain on sale of equipment | 2,000 | 9,600 | ||
Income before tax | 30,750 | |||
Income tax expense | 6,150 | |||
Net income | $24,600 |
1. | Dividends in the amount of $6,000 were 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 $19,800 and was 70% depreciated was sold during 2017. |
Prepare a statement of cash flows using the direct method
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