Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows: 1 Dec. 31, 2016 Dec. 31, 2015

The comparative balance sheet of Del Ray Enterprises Inc. at December 31, 2016 and 2015, is as follows:

1

Dec. 31, 2016

Dec. 31, 2015

2

Assets

3

Cash

$146,590.00

$180,310.00

4

Accounts receivable (net)

223,920.00

242,510.00

5

Merchandise inventory

322,020.00

298,480.00

6

Prepaid expenses

12,710.00

9,770.00

7

Equipment

654,640.00

536,710.00

8

Accumulated depreciation-equipment

(170,680.00)

(132,810.00)

9

Total assets

$1,189,200.00

$1,134,970.00

10

Liabilities and Stockholders Equity

11

Accounts payable (merchandise creditors)

$249,470.00

$238,540.00

12

Mortgage note payable

0.00

335,820.00

13

Common stock, $10 par

73,000.00

23,000.00

14

Paid-in capital: Excess of issue price over parcommon stock

450,000.00

310,000.00

15

Retained earnings

416,730.00

227,610.00

16

Total liabilities and stockholders equity

$1,189,200.00

$1,134,970.00

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2016 are as follows:

A. Net income, $343,310
B. Depreciation reported on the income statement, $83,570
C. Equipment was purchased at a cost of $163,630 and fully depreciated equipment costing $45,700 was discarded, with no salvage realized.
D. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty.
E. 10,000 shares of common stock were issued at $19 for cash.
F. Cash dividends declared and paid, $154,190

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Electronic Data Processing Controls And Auditing

Authors: W.Thomas Porter

1st Edition

0534009336, 978-0534009335

More Books

Students also viewed these Accounting questions