Question

In: Accounting

2.) Scheeler Company has the following comparative balance sheet data available: 12/31/2018 12/31/2017 Cash $30,000 $80,000...

2.) Scheeler Company has the following comparative balance sheet data available:

12/31/2018

12/31/2017

Cash

$30,000

$80,000

Accounts Receivable, net

160,000

100,000

Inventory

100,000

70,000

Prepaid Rent

20,000

10,000

Total Current Assets

$310,000

$260,000

Equipment

$400,000

$200,000

Accumulated Depreciation

(60,000)

(50,000)

Total Assets

$650,000

$410,000

Accounts Payable

$50,000

$40,000

Salaries Payable

40,000

40,000

Bonds Payable

0

50,000

Common Stock, $10 par

300,000

100,000

Additional Paid-in Capital

50,000

0

Retained Earnings

210,000

180,000

Total Liabilities & Stockholders' Equity

$650,000

$410,000

Additional information:

1. The company reports net income of $100,000 and depreciation expense of $20,000 for the year ending December 31, 2018.

2. Dividends declared and paid in 2018, $70,000.

3. Equipment with a cost of $20,000 and accumulated depreciation of $10,000 was sold for $3,000.

4. New equipment was purchased for cash.

5. No common stock was retired during 2018.

Using the indirect method, prepare the statement of cash flows for the year ending December 31, 2018

Solutions

Expert Solution

Statement of Cash Flow
Particulars Amount Total Amount
Income               100,000.00
Loss on sale of equipment                    7,000.00
Depreciation                  20,000.00
Increase in AR               (60,000.00)
Increase in inventory               (30,000.00)
Increase in prepaid rent               (10,000.00)
Increase in AP                  10,000.00
Change in Salaries payable                                 -  
Cash flow from operating activities                  37,000.00
Cash flow from Investing activities
Sale of Equipment                    3,000.00
Purchase of Equipment             (220,000.00)
Cash flow from Investing activities             (217,000.00)
Cash flow from Financing activities
Issue of Stock               200,000.00
Issue of paid in capital                  50,000.00
Payment of bonds               (50,000.00)
Dividends Paid               (70,000.00)
Cash flow from Financing activities               130,000.00
net change in cash and cash equivalents               (50,000.00)
Opening cash and cash equivalents                  80,000.00
Closing cash and cash equivalents                  30,000.00

Related Solutions

T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000...
T. P. Jarmon Company Balance Sheet for 12/31/2017 and 12/31/2018 Assets 2017 2018 Cash $15,000 $14,000 Marketable securities 6,000 6,200 Accounts receivable 42,000 33,000 Inventory 51,000 84,000 Prepaid rent 1,200 1,100 Total current assets $115,200 $138,300 Net plant and equipment $286,000 $270,000 Total assets $401,200 $408,300 Liabilities and Equity 2017 2018 Accounts payable $48,000 $57,000 Accruals 6,000 5,000 Notes payable 15,000 13,000 Total current liabilities $69,000 $75,000 Long-term debt $160,000 $150,000 Common stockholders' equity $172,200 $183,300 Total liabilities and equity...
The following information is available for the Perez Company: Comparative Balance Sheets 2017 2018 Cash $800...
The following information is available for the Perez Company: Comparative Balance Sheets 2017 2018 Cash $800 $1,200 Accounts receivable 440 400 Inventory 740 1,220 Land 500 820 Equipment 4,140 4,400 Less:Accumulated depreciation (620) (800) Total Assets $6,000 $7,240 Accounts payable $1,600 $1,000 Notes payable (long-term) 1,800 1,440 Common stock, no par 1,200 2,000 Retained earnings 1,400 2,800 Total Liabilities and Stockholders' Equity $6,000 $7,240 Partial additional information:The net income for 2018 totaled $3,200. During 2018, the company sold for $780,...
Calloway Company reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $77,375...
Calloway Company reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $77,375 $22,955 Available-for-sale debt securities (not cash equivalents) 15,500 85,000 Accounts receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, buildings, and equipment 1,250,000 1,125,000 Accumulated depreciation (610,000) (572,000) Total assets $979,375 $876,205 Accounts payable $76,340 $148,670 Salaries payable 20,000 24,500 Notes payable (current) 25,000 75,000 Bonds payable 200,000 0 Common stock 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity...
Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and 2017: 12/31/2018 12/31/2017...
Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and 2017: 12/31/2018 12/31/2017 Cash $ 21,900 $ 10,000 Accounts receivables (net)     50,000    45,000 Inventory     64,000    70,000 Land     0    32,000 Plant assets 580,000 560,000 Accumulated depreciation (103,000) (100,000) $612,900 $617,000 Accounts payable $ 90,000 $ 93,000 Salaries payable      8,000      4,000 Dividends payable 1,700 2,300 Payable for general & admin expenses    18,000    10,000 Income tax payable      9,050     ...
BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900...
BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $6,900 Accounts receivable 61,400 50,800 Short-term debt investments (available-for-sale) 35,000 17,800 Inventory 40,000 59,400 Prepaid rent 5,000 3,900 Equipment 155,200 129,000 Accumulated depreciation—equipment (35,000 ) (25,000 ) Copyrights 45,600 49,900 Total assets $313,100 $292,700 Accounts payable $46,300 $39,800 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 3,900 Short-term loans payable 8,000 10,100 Long-term loans payable 60,100 68,400 Common stock, $10 par 100,000...
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash...
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $77,375 $22,955 Available-for-sale debt securities (not cash equivalents) 15,500 85,000 Accounts receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, buildings, and equipment 1,250,000 1,125,000 Accumulated depreciation (610,000) (572,000) Total assets $979,375 $876,205 Accounts payable $76,340 $148,670 Salaries payable 20,000 24,500 Notes payable (current) 25,000 75,000 Bonds payable 200,000 0 Common stock 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders'...
A comparative balance sheet for Harrison Co. appear below: Assets 12/31/2019 12/31/2018 Cash $34,000 $11,000 Accounts...
A comparative balance sheet for Harrison Co. appear below: Assets 12/31/2019 12/31/2018 Cash $34,000 $11,000 Accounts receivable 18,000 13,000 Inventory 25,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciation-equipment (20,000) (15,000) Total assets $123,000 $85,000 Liabilities and Stockholders' Equity Accounts payable $17,000 $7,000 Bonds payable 36,000 45,000 Common stock 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and equity $123,000 $85,000 Additional information: Net income for the year ending December 31, 2019 was $35,000....
The comparative balance sheet for company “Delta” in € for years 2017 and 2018 is given...
The comparative balance sheet for company “Delta” in € for years 2017 and 2018 is given below: Comparative Balance Sheet of “Delta” Assets 2018 2017 Liabilities & Stockholders' Equity 2018 2017 Fixed assets: Property, plant & equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets Current assets: Cash and cash equivalents Marketable securities Accounts receivables Inventory Total current assets Total current assets Stockholders' equity: Common stock Retained earnings Total stockholders' equity Long-term liabilities: Long-term debt...
The comparative balance sheet for company “Delta” in € for years 2017 and 2018 is given...
The comparative balance sheet for company “Delta” in € for years 2017 and 2018 is given below: Comparative Balance Sheet of “Delta” Assets 2018 2017 Liabilities & Stockholders' Equity 2018 2017 Fixed assets: Property, plant & equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets Current assets: Cash and cash equivalents Marketable securities Accounts receivables Inventory Total current assets Total current assets 1,900,000 (600,000) 1,300,000 85,000 1,385,000 100,000 175,000 235,000 290,000 800,000 2,185,000 1,600,000 (450,000)...
Frizell Company has the following comparative balance sheet data.
Frizell Company has the following comparative balance sheet data.   Additional information for 2017: 1. Net income was $25,000. 2. Sales on account were $410,000. Sales returns and allowances were $20,000. 3. Cost of goods sold was $198,000.   Instructions Compute the following ratios at December 31, 2017. (a) Current ratio. (b) Acid-test ratio. (c) Accounts receivable turnover. (d) Inventory turnover.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT