Question
The following are the Balance Sheets for the Florence Company at December 31, 2015 and 2016. Based on these and the other data following them,
The following are the Balance Sheets for the Florence Company at December 31, 2015 and 2016. Based on these and the other data following them, prepare a 2016 Cash Flow Statement in the proper form for the Florence Company. Be sure to include all correct headings and totals.
Assets: | 2015 | 2016 |
Current assets: |
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Cash | 165,000 | 210,000 |
Account receivable, net | 320,000 | 370,000 |
Inventories | 410,000 | 380,000 |
Total current assets | 895,000 | 960,000 |
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Equipment, net | 520,000 | 580,000 |
Total Assets | 1,415,000 | 1,540,000 |
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Liabilities and Stockholders equity: |
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Current liabilities: |
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Accounts payable | 345,000 | 280,000 |
Accrued Expenses | 110,000 | 135,000 |
Total Current liabilities | 455,000 | 415,000 |
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Long-term debt | 620,000 | 710,000 |
Total liabilities | 1,075,000 | 1,125,000 |
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Stockholders Equity: |
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Common stock | 20,000 | 25,000 |
Addl Paid in Capital | 80,000 | 100,000 |
Retained Earnings | 290,000 | 375,000 |
| 390,000 | 500,000 |
Less, Treasury stock | -50,000 | -85,000 |
Total equity | 340,000 | 415,000 |
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Total liabilities and stockholders equity | 1,415,000 | 1,540,000 |
Additional data for 2016:
- Net Income was 115,000
- Dividends paid were 30,000
- Equipment purchases totaled 120,000
- Sold equipment with a net book value of 20,000 for 35,000
- Depreciation totaled 40,000
- Sold 5,000 shares of common stock for $5 per share
- Purchased 7,000 shares of treasury stock for $5 per share
- Borrowed 150,000 under a new long term loan and repaid 25,000 on it before year-end.
- Repaid 35,000 on another long term loan
- Florence paid 40,000 in income taxes and 50,000 in interest
- The allowance for bad debts was 20,000 on December 31, 2015; and 30,000 on December 31, 2016. Bad debt expense was 15,000 and write-offs were 5,000 for 2016.
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