Question
In: Accounting
Union Brake Inc.’s comparative balance sheet information at December 31, 2017 and 2016, and its income...
Union Brake Inc.’s comparative balance sheet information at December 31, 2017 and 2016, and its income statement for the year ended December 31, 2017, are as follows:
| Union Brake Inc. | ||||||
| Income Statement | ||||||
| For Year Ended December 31, 2017 | ||||||
| Sales | $ | 889,000 | ||||
| Cost of goods sold | 566,000 | |||||
| Gross profit | $ | 323,000 | ||||
| Operating expenses | $ | 132,620 | ||||
| Depreciation expense | 41,180 | 173,800 | ||||
| Operating Profit | 149,200 | |||||
| Loss on sale of equipment | 14,940 | |||||
| Investment income | 21,520 | |||||
| Profit before taxes | 155,780 | |||||
| Income taxes | 22,000 | |||||
| Profit | 133,780 | |||||
| Union Brake Inc. | |||||||||
| Balance Sheet Information | |||||||||
| December 31 | |||||||||
| 2017 | 2016 | Net Change | |||||||
| Cash | $ | 38,000 | $ | 22,960 | $ | 15,040 | |||
| Cash equivalents | 27,280 | 7,600 | 19,680 | ||||||
| Accounts receivable | 86,320 | 27,440 | 58,880 | ||||||
| Inventory | 112,240 | 73,520 | 38,720 | ||||||
| Investment | 0 | 27,280 | (27,280) | ||||||
| Land | 74,800 | 74,800 | 0 | ||||||
| Building and equipment | 403,580 | 425,100 | (21,520) | ||||||
| Accumulated depreciation | 108,080 | 86,960 | 21,120 | ||||||
| Accounts payable | 5,820 | 35,800 | (29,980) | ||||||
| Dividends payable | 2,400 | 1,600 | 800 | ||||||
| Bonds payable | 14,000 | 0 | 14,000 | ||||||
| Preferred shares | 79,600 | 79,600 | 0 | ||||||
| Common shares | 404,080 | 404,080 | 0 | ||||||
| Retained earnings | 128,240 | 50,660 | 77,580 | ||||||
During 2017, the following transactions occurred:
1. Purchased equipment for $21,200 cash.
2. Sold the long-term investment on January 1, 2017 for $48,800,
resulting in investment income of 21,520.
3. Sold equipment for $7,720 cash that had originally cost $42,720
and had $20,060 of accumulated depreciation.
4. Issued $14,000 of bonds payable at face value.
Required:
1. How much cash was paid in dividends?
2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solutions
Expert Solution
Answer to Part 1:
Retained Earnings, Ending = Retained Earnings, Beginning + Net
Income – Dividend
$128,240 = $50,660 + $133,780 – Dividend
Dividend = $56,200
Answer to Part 2:
Accumulated Depreciation, Ending = Accumulated Depreciation,
Beginning + Depreciation – Depreciation on Equipment Sold
$108,080 = $86,960 + Depreciation - $20,060
Depreciation = $41,180
ekkarill92 answered 1 year agoRelated Solutions
Instant Brake Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income...
Instant Brake Inc.’s comparative balance sheet information at
December 31, 2020 and 2019, and its income statement for the year
ended December 31, 2020, are as follows:
Instant Brake Inc.
Income Statement
December 31, 2020
Sales
$
879,000
Cost of goods sold
571,000
Gross profit
$
308,000
Operating expenses
$
132,670
Depreciation expense
41,230
173,900
Operating Profit
134,100
Loss on sale of equipment
12,110
Investment income
19,020
Profit before taxes
141,010
Income taxes
17,000
Profit
$
124,010
Instant Brake Inc....
The comparative balance sheet of Four Seasons Enterprises Inc. for December 31, 2017 and 2016, is...
The comparative balance sheet of Four Seasons Enterprises
Inc. for December
31, 2017 and 2016, is as follows:
Dec. 31, 2017 Dec. 31, 2016
Assets Cash $ 395,000 $ 88,000
Accounts receivable (net) 225,000 242,000
Inventories 638,000 576,000
Prepaid expenses 20,500 15,000
Equipment 895,000 750,000
Accumulated depreciation—equipment (175,000)
(140,000)
Total assets $1,998,500 $1,531,000
Accounts payable (merchandise creditors) $ 100,000 $
92,000
Mortgage note payable 0275,000
Common stock, $5 par 500,000 250,000
Paid-in capital: Excess of issue over par—common stock
250,000...
The following are Sheridan Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with...
The following are Sheridan Corp.’s comparative balance sheet
accounts at December 31, 2017 and 2016, with a column showing the
increase (decrease) from 2016 to 2017.
COMPARATIVE BALANCE SHEETS
2017
2016
Increase
(Decrease)
Cash
$814,600
$706,000
$108,600
Accounts receivable
1,129,100
1,176,600
(47,500
)
Inventory
1,861,900
1,719,500
142,400
Property, plant, and equipment
3,335,800
2,940,300
395,500
Accumulated depreciation
(1,159,600
)
(1,046,100
)
(113,500
)
Investment in Myers Co.
313,100
277,300
35,800
Loan receivable
249,200
—
249,200
Total assets
$6,544,100
$5,773,600
$770,500
Accounts...
The following are Ayayai Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with...
The following are Ayayai Corp.’s comparative balance sheet
accounts at December 31, 2017 and 2016, with a column showing the
increase (decrease) from 2016 to 2017.
COMPARATIVE BALANCE SHEETS
2017
2016
Increase
(Decrease)
Cash
$821,300
$694,000
$127,300
Accounts receivable
1,124,400
1,158,200
(33,800
)
Inventory
1,852,600
1,702,600
150,000
Property, plant, and equipment
3,300,400
2,951,400
349,000
Accumulated depreciation
(1,174,500
)
(1,048,100
)
(126,400
)
Investment in Myers Co.
312,300
273,800
38,500
Loan receivable
250,100
—
250,100
Total assets
$6,486,600
$5,731,900
$754,700
Accounts...
The following are Wildhorse Corp.’s comparative balance sheet accounts at December 31, 2017 and 2016, with...
The following are Wildhorse Corp.’s comparative balance sheet
accounts at December 31, 2017 and 2016, with a column showing the
increase (decrease) from 2016 to 2017.
COMPARATIVE BALANCE SHEETS
2017
2016
Increase
(Decrease)
Cash
$811,100
$702,700
$108,400
Accounts receivable
1,139,100
1,176,000
(36,900
)
Inventory
1,847,000
1,704,500
142,500
Property, plant, and equipment
3,317,700
2,945,400
372,300
Accumulated depreciation
(1,158,000
)
(1,048,400
)
(109,600
)
Investment in Myers Co.
312,200
274,000
38,200
Loan receivable
250,000
—
250,000
Total assets
$6,519,100
$5,754,200
$764,900
Accounts...
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as...
The comparative balance sheet of Cromme Inc. for December 31,
2016 and 2015, is shown as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$625,680.00
$586,230.00
4
Accounts receivable (net)
228,100.00
208,850.00
5
Inventories
640,910.00
617,650.00
6
Investments
0.00
240,620.00
7
Land
328,090.00
0.00
8
Equipment
704,540.00
553,320.00
9
Accumulated depreciation-equipment
(166,310.00)
(147,840.00)
10
Total assets
$2,361,010.00
$2,058,830.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$425,280.00
$404,550.00
13
Accrued expenses payable (operating expenses)...
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as...
The comparative balance sheet of Cromme Inc. for December 31,
2016 and 2015, is shown as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$626,170.00
$585,760.00
4
Accounts receivable (net)
227,840.00
208,880.00
5
Inventories
641,390.00
616,790.00
6
Investments
0.00
240,820.00
7
Land
327,380.00
0.00
8
Equipment
704,290.00
554,020.00
9
Accumulated depreciation-equipment
(167,160.00)
(148,930.00)
10
Total assets
$2,359,910.00
$2,057,340.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$424,670.00
$404,080.00
13
Accrued expenses payable (operating expenses)...
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as...
The comparative balance sheet of Cromme Inc. for December 31,
2016 and 2015, is shown as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$625,760.00
$585,920.00
4
Accounts receivable (net)
227,840.00
208,960.00
5
Inventories
641,760.00
617,120.00
6
Investments
0.00
240,000.00
7
Land
328,000.00
0.00
8
Equipment
705,120.00
553,120.00
9
Accumulated depreciation-equipment
(166,400.00)
(148,000.00)
10
Total assets
$2,362,080.00
$2,057,120.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$424,480.00
$404,960.00
13
Accrued expenses payable (operating expenses)...
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as...
The comparative balance sheet of Cromme Inc. for December 31,
2016 and 2015, is shown as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$625,080.00
$586,430.00
4
Accounts receivable (net)
228,260.00
209,470.00
5
Inventories
641,070.00
616,400.00
6
Investments
0.00
240,170.00
7
Land
327,640.00
0.00
8
Equipment
705,000.00
552,830.00
9
Accumulated depreciation-equipment
(165,670.00)
(148,610.00)
10
Total assets
$2,361,380.00
$2,056,690.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$425,090.00
$405,900.00
13
Accrued expenses payable (operating expenses)...
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as...
The comparative balance sheet of Cromme Inc. for December 31,
2016 and 2015, is shown as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$625,650.00
$586,340.00
4
Accounts receivable (net)
228,170.00
208,030.00
5
Inventories
641,480.00
617,130.00
6
Investments
0.00
240,290.00
7
Land
328,170.00
0.00
8
Equipment
706,070.00
552,300.00
9
Accumulated depreciation-equipment
(165,580.00)
(147,010.00)
10
Total assets
$2,363,960.00
$2,057,080.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$424,300.00
$404,860.00
13
Accrued expenses payable (operating expenses)...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Throughout this chapter, you were encouraged to take control of your life and establish your own...
- Human resource management Case Gerald Mahoney was working in the women’s shoe department and doing the...
- Compare and contrast the Dow Jones Industrial Average and the S & P 500.
- If a company excluded the tax refund from taxable income, and did not record an unrecognized...
- Analyze means 1) identify the issue or problem 2) State the rule(s) and any exceptions if...
- What is a hijra, and what is their function within traditional Indian society? Describe in 400...
- what is personal compitive advantage ?indentify your personal style (you can ive example of you personal...
ADVERTISEMENT