Question
Sketchers Corporations recent comparative balance sheet and income statement follow. Balance Sheet, December 31 Prior Year Current Year Assets Cash and cash equivalents $28,800 $122,400
Sketchers Corporations recent comparative balance sheet and income statement follow.
Balance Sheet, December 31 | Prior Year | Current Year |
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Assets | ||
Cash and cash equivalents | $28,800 | $122,400 |
Accounts receivable (net) | 36,000 | 64,800 |
Inventory | 72,000 | 86,400 |
Investment, long-term | 14,400 | - |
Plant assets | 216,000 | 338,400 |
Accumulated depreciation | (36,000) | (50,400) |
Total assets | $331,200 | $561,600 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $21,600 | $36,000 |
Notes payable, short-term (nontrade) | 28,800 | 21,600 |
Notes payable, long-term | 72,000 | 129,600 |
Common stock, no-par | 180,000 | 288,000 |
Retained earnings | 28,800 | 86,400 |
Total liabilities and stockholders' equity | $331,200 | $561,600 |
Income Statement, For | |
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Year Ended, December 31 | Current Year |
Sales revenue | $1,080,000 |
Cost of goods sold | (648,000) |
Gross margin | 432,000 |
Depreciation expense | (14,400) |
Other operating expenses | (230,400) |
Net income | $187,200 |
Additional Information 1. Sold the long-term investment at cost, for cash. 2. Declared and paid a cash dividend of $50,400. 3. Purchased plant assets that cost $122,400; gave a $86,400 long-term note payable and paid $36,000 cash.
4. Paid a $28,800 long-term note payable by issuing common stock; fair value, $28,800. 5. Issued a stock dividend, $79,200.
Statement of Cash Flows | |
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For the Year Ended December 31 | |
Cash flows from operating activities | |
Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Adjustments: | |
Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash flows from investing activities | |
Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash flows from financing activities | |
Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Cash and cash equivalents, December 31Cash and cash equivalents, January 1Cash paid for dividendsChange in accounts payableChange in accounts receivable, netChange in inventoryDepreciation expenseExchanged plant assets for common stockExchanged plant assets for long-term note.Gain on sale of plant assetsIssuance of common stock for long-term note payment.Issuance of short-term note payableLoss on sale of plants assetsNet cash provided (used) by financing activitiesNet cash provided (used) by investing activitiesNet cash provided (used) by operating activitiesNet change in cash and cash equivalents during the yearNet incomePayment on short-term note payableProceeds from sale of plant assetsPurchase of long-term investmentsPurchase of plant assetsRetained earningsSale of long-term investment | Answer
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Noncash Disclosure | |
Answer
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