Question

Missing amounts from financial statements

The financial statements at the end of Wolverine Realty’s first month of operations are as follows:

By analyzing the interrelationships among the four financial statements, determine the proper amounts for the missing items. Use the minus sign to indicate cash outflows, cash payments, and decreases in cash in the Statement of Cash Flows.

Wolverine Realty
Income Statement
For the Month Ended April 30, 20Y0
Fees earned				$
Expenses:
Wages expense		$304,000
Rent expense		107,000
Supplies expense
Utilities expense		22,000
Miscellaneous expense		23,000
Total expenses				(483,000)
Net income				$270,000

Wolverine Realty
Statement of Stockholders' Equity
For the Month Ended April 30, 20Y0
		Common Stock		Retained Earnings		Total
Balances, April 1, 20Y0		$0		$0		$0
Issued common stock
Net income
Dividends				(120,000)		(120,000)
Balances, April 30, 20Y0		$		$		$

Wolverine Realty
Balance Sheet
April 30, 20Y0
Assets
Cash				$461,000
Supplies				11,000
Land				145,000
Total assets				$
Liabilities
Accounts payable				$92,000
Stockholders’ Equity
Common stock		$375,000
Retained earnings		$
Total stockholders’ equity
Total liabilities and stockholders’ equity				$

Wolverine Realty
Statement of Cash Flows
For the Month Ended April 30, 20Y0
Cash flows from (used for) operating activities:
Cash received from customers		$
Cash paid for expenses and to creditors		(402,000)
Net cash flows from operating activities				$
Cash flows from (used for) investing activities:
Cash paid for land				$
Cash flows from (used for) financing activities:
Cash received from issuing common stock		$
Cash paid for dividends
Net cash flows from financing activities
Net increase (decrease) in cash				$
Cash balance, April 1, 20Y0				0
Cash balance, April 30, 20Y0				$

Answer 1

1. Fees earned = 483,000 + 270,000 = 753,000

2.  Supplies expense = 483000-304000-107000-22000-23000 = 27000

3.

	Common Stock	Retained Earnings	Total
Balances, April 1, 20Y0	0	0	0
Issued common stock	375,000	0	375,000
Net Income	0	270,000	270,000
Less: Dividends	0	-120,000	-120,000
Balances, April 30, 20Y0	375000	150000	525000

4. Total assets =  461000+11000+145000 = 617000

5. Retained earnings = 150,000

6. Total stockholders’ equity = 525000

7. Total liabilities and stockholders’ equity = 525,000 + 92,000 = 617000

8. Cash received from customers = Fees earned = 483,000 + 270,000 = 753,000

9. Net cash flows from operating activities = 753,000 - 402,000= 351,000

10.  Cash paid for land = (145,000)

11. Cash flows from (used for) financing activities: = (145,000)

12. Cash received from issuing common stock = 375,000

13. Cash paid for dividends = (120,000)

14. Net cash flows from financing activities = 375,000 -120,000 = 255,000

15.  Net increase (decrease) in cash = 351,000 + (145,000) + 255,000= 461,000

16. Cash balance, April 1, 20Y0 = 0

17. Cash balance, April 30, 20Y0 = 461,000