The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017. Amounts are in millions of dollars: |
The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017 Amounts are in millions of dollars Statements of Financial Position Cash Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation 2017 $ 140 78 62 2016 $ 86 60 68 54 190 (60) 238 (35) Total assets $ 483 $398 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings S 54 3 146 207 73 74 4 76 190 54 Total liabilities and shareholders' equity $ 483 $398 Statement of Earnings Sales Cost of sales $230 (138) Gross profit Depreciation expense Other operating expenses 92 (10) (59) Earnings from operations Gain on sale of investments 23 7 Loss on sale of equipment Earnings before income tax Income tax expense 4 Net earnings S 24 Additional information is as follows a. Old equipment was sold for cash during 2017. It had an original cost of $52 and an accumulated depreciation of $35 b. A new building was acquired during the year in exchange for a long-term note for $70, payable in five years. In addition, new equipment was purchased for cash The following information has been reported by Laporte Inc. on its statements of financial position at December 31, 2016 and 2017, and on its statement of earnings for the year ended December 31, 2017 Amounts are in millions of dollars Statements of Financial Position Cash Accounts receivable Merchandise inventory Long-term investments Property, plant, and equipment Accumulated depreciation 2017 $ 140 78 62 2016 $ 86 60 68 54 190 (60) 238 (35) Total assets $ 483 $398 Accounts payable Income taxes payable Long-term borrowings Contributed capital Retained earnings S 54 3 146 207 73 74 4 76 190 54 Total liabilities and shareholders' equity $ 483 $398 Statement of Earnings Sales Cost of sales $230 (138) Gross profit Depreciation expense Other operating expenses 92 (10) (59) Earnings from operations Gain on sale of investments 23 7 Loss on sale of equipment Earnings before income tax Income tax expense 4 Net earnings S 24 Additional information is as follows a. Old equipment was sold for cash during 2017. It had an original cost of $52 and an accumulated depreciation of $35 b. A new building was acquired during the year in exchange for a long-term note for $70, payable in five years. In addition, new equipment was purchased for cash