Question
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.
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