Question

Prepare a balance sheet and cash flow statement using the selected financial statement information and additional data for Stanislaus Co. presented below.

Balance sheet

   December 31 2015

                                                                                                                                                     

Cash..........................................................     $52,000                                               

Accounts receivable (net)...........................       64,000                                               

Inventory..................................................     178,000                                               

Land..........................................................       78,800                                               

Equipment.................................................     504,000                                                   

TOTAL............................................ $876,800                                               

Accumulated depreciation..........................     $94,000                                               

Accounts payable.......................................       50,400                                               

Notes payable - short-term........................       67,200                                               

Notes payable - long-term..........................     178,000                                               

Common stock...........................................     420,000                                               

Retained earnings......................................       67,200                                               

TOTAL............................................ $876,800                         

Trial balance

December 31, 2016

.................................................................      DR                CR

Cash..........................................................     $60,000                                               

Accounts receivable gross...........................       75,000                                               

Allowance for doubtful accounts…………………..4,500

Inventory..................................................     148,000                                               

Land..........................................................       58,600                                               

Equipment.................................................     620,000                                                   

              Accumulated depreciation........................40,000                                 

Accounts payable.......................................                      48,700                              

Notes payable - short-term........................                         24,200                              

Notes payable - long-term..........................                        154,000                             

Common stock...........................................                        420,000                             

Retained earnings......................................                        67,200

Sales revenue...........................................................       . 630,500

Cost of goods sold……………………………….285,000

Salary expense……………………………………95000

Advertising expense……………………………    14,600

Depreciation expense…………………………… 10,000

Bad debt expense…………………………………2,500

Other expense……………………………………20,000

Additional data for 2016:

1.    Land was sold at its original cost.

2.    Equipment was purchased

3.    Notes were repaid

Answer 1

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Balance Sheet as on December 31 2016
Cash		$         60,000
Accounts Receivable	$         75,000
Allowance for doubtful accounts	$          -4,500
Accounts Receivable,Net		$         70,500
Inventory		$       148,000
Total Current Assets		$       278,500
Land		$         58,600
Equipment	$       620,000
Accumulated Depreciation	$        -40,000
Equipment, Net		$       580,000
Total Assets		$       917,100
Accounts payable	$         48,700
Notes payable - short-term	$         24,200
Total Current Liabilities		$         72,900
Notes payable - long-term		$       154,000
Total Liabilities		$       226,900
Common stock.		$       420,000
Retained Earning (67200+203000 Net Income)		$       270,200
Total Liabilities and Equities		$       917,100
Cash Flow
Net Income		$       203,000
Adjustment to Net income:
Depreciation Expenses		$        -54,000
Increase in Receivable		$          -6,500
Decerease in inventory		$         30,000
Decrease in Accounts Payable		$          -1,700
Decrease in Note Payable		$        -43,000
Net Cash flow from Operating Activities		$       127,800
Cash flow from Investing activities:
Sale of Land		$         20,200
Purchase of Equipment		$     -116,000
Net Cash from Investing Activities		$        -95,800
Cash flow from financing activities:
Repayent of Note Payment		$        -24,000
Net Cash from Financing Activities		$        -24,000
Net Increase in Cash		$            8,000
Add: Beginning Balance		$         52,000
Ending Balance		$         60,000