Question
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of
Sharp Screen Films, Inc., 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: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 63,400 22,650 $ 64,750 15,450 22,650 209,350 18,100 150,400 (45,850) $208,700 (59,300) $252,900 $ 9,200 $ 19,400 2,200 2,800 60,500 71,100 98,700 66,000 82,300 49,400 $252,900 $208,700 $196,000 93,000 13,450 43,100 $ 46,450 Additional Data: a. Bought equipment for cash, $58,950. b. Paid $10,600 on the long-term note payable. c. Issued new shares of stock for $32,700 cash. d. Dividends of $13,550 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit.
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