In: Accounting
Question 2
Comparative Balance Sheet |
|||
Shiner Corporation |
|||
Assets |
Dec 31, 1996 |
Dec 31, 1995 |
|
Cash |
$37,000 |
$49,000 |
|
Accounts Receivable |
$26,000 |
$36,000 |
|
Prepaid Expenses |
$6,000 |
$0 |
|
Land |
$70,000 |
$0 |
|
Building |
$200,000 |
$0 |
|
Accumulated Depreciation |
$11,000 |
$189,000 |
$0 |
Equipment |
$68,000 |
$0 |
|
Accumulated Depreciation |
$10,000 |
$58,000 |
$0 |
Total Assets |
$386,000 |
$85,000 |
|
Liabilities and Stockholder Equity |
|||
Accounts Payable |
$40,000 |
$5,000 |
|
Bonds Payable |
$150,000 |
$0 |
|
Common Stock |
$60,000 |
$0 |
|
Retained Earnings |
$136,000 |
$20,000 |
|
Total Liabilities and Stockholder Equity |
$386,000 |
$85,000 |
Income Statement |
||
Shiner Corporation |
||
Revenue |
$492,000 |
|
Operating Expenses |
$269,000 |
|
Depreciation |
$21,000 |
$290,000 |
Income before Income Taxes |
$202,000 |
|
Income Tax Expense |
$68,000 |
|
Net Income |
$134,000 |
Additional information:
|
A Cash flow statement provides the following information: |
1) Information about company's cash receipt and cash payment during an accounting period. |
2) Information about company's operating, investing and financing activities. |
3) Information access the company's liquidity, solvency and financing flexibility. |
Cash flow from operating activities (CFO), consists of the inflows and outflows of cash resulting from transactions that affect a firm's net income. |
Cash flow from investing activities (CFI) consists of the inflow and outflows of cash resulting from the acquisition of long term assets and investment. |
Cash Flow from financing activities (CFF) consists of the inflow and outflows of cash resulting from transactions affecting a firm's capital structure. |