Question

Condensed financial data of Monopoly Corporation appear below: A cash dividend was declared and paid in full to stockholders during the year. Required: Solve for the missing numbers.

• Balance Sheet
• Income Stmt
• Cash Flow Stmt

Solve for the missing numbers.

MONOPOLY CORPORATION Comparative Balance Sheet December 31 Current Year Prior Year Assets Cash $34,040 $22,400 Accounts receivable 31,600 Inventories 69,600 Prepaid rent 2,060 1,600 Property, plant, and equipment 218,000 196,000 Accumulated depreciation (52,600) (38,000) Total assets $324,300 $283,200 Liabilities and Stockholders' Equity Accounts payable $37,200 $33,600 Accrued Liabilities 10,000 11,600 Notes payable (long-term) 128,000 146,000 Contributed capital 46,000 23,000 Retained earnings 103,100 69,000 Total liabilities and stockholders' equity $324,300 $283,200 Balance Sheet Income Stmt Cash Flow Stmt Solve for the missing numbers. MONOPOLY CORPORATION Income Statement Year Ended December 31 Sales $461,500 Expenses Cost of goods sold $286,000 Selling, general and administrative expenses 92,000 Depreciation expense Interest expense 8,600 Income taxes 417,800 Net income $43,700

• Balance Sheet
• Income Stmt
• Cash Flow Stmt

Solve for the missing numbers. (Enter any deductions and cash outflows as a negative value.)

MONOPOLY CORPORATION Cash Flow Statement Year Ended December 31 Cash flows from operating activities Net income $43,700 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 14,600 Change in current assets and current liabilities Accounts Receivable (3,600) Inventories $(18,000) Prepaid Rent Accounts Payable $3,600 Accrued Liabilities Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant, and equipment (22,000) Net cash provided by (used for) investing activities (22,000) Financing activities Additional capital contributed by stockholders Payments on long-term debt (18,000) Payment of cash dividends Net cash provided by (used for) financing activities Increase in cash and cash equivalents 11,640 Cash and cash equivalents, beginning of period 22,400 Cash and cash equivalents, end of period $34,040

Answer 1

MONOPOLY CORPORATION Comparative Balance Sheet December 31 Current Year Prior Year Assets Cash $34,040 $22,400 Accounts receivable 35,200 31,600 Inventories 87,600 69,600 Prepaid rent 2,060 1,600 Property, plant, and equipment 218,000 196,000 Accumulated depreciation (52,600) (38,000) Total assets $324,300 $283,200 Liabilities and Stockholders' Equity Accounts payable $37,200 $33,600 Accrued Liabilities 10,000 11,600 Notes payable (long-term) 128,000 146,000 Contributed capital 46,000 23,000 Retained earnings 103,100 69,000 Total liabilities and stockholders' equity $324,300 $283,20 MONOPOLY CORPORATION Income Statement Year Ended December 31 Sales $461,500 Expenses Cost of goods sold $286,000 Selling, general and administrative expenses 92,000 Depreciation expense 14,600 Interest expense 8,600 Income taxes 417,800 Net income $43,700

MONOPOLY CORPORATION Cash Flow Statement Year Ended December 31 Cash flows from operating activities Net income $43,700 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 14,600 Change in current assets and current liabilities Accounts Receivable - 3,600 Inventories - 18,000 Prepaid Rent - 460 Accounts Payable 3,600 Accrued Liabilities - 1,600 Net cash provided by (used in) operating activities 38,240 Cash flows from investing activities Purchase of property, plant, and equipment - 22,000 Net cash provided by (used for) investing activities - 22,000 Financing activities Additional capital contributed by stockholders 23,000 Payments on long-term debt - 18,000 Payment of cash dividends - 9,600 Net cash provided by (used for) financing activities - 4,600 Increase in cash and cash equivalents 11,640 Cash and cash equivalents, beginning of period 22,400 Cash and cash equivalents, end of period $34,040

Cash dividend paid = Retained earnings, beginning + Net income – Retained earnings, ending

= 69,000 + 43,700 - 103,100

= $9,600