Question

23) Marshals, Inc. has the following comparative balance sheets for 2018 and 2017:

                                         2018                        2017             Change  

Cash                           $   96,000                 $ 108,000     12,000

Receivables                    47,000                     49,000           2,000

Inventory                      110,000                   100,000         10,000

Office Supplies                 8,000                     12,000           4,000

Plant assets, net           380,000                 300,000         80,000

Long term Investment  126,000                    84,000         42,000

                                   $ 767,000               $ 653,000                          

    

Accounts payable       $102,000                $   98,000          4,000

Accrued liabilities            40,000                     14,000        26,000

Long-term note payable 80,000                 150,000        70,000

Common stock              420,000                  330,000        90,000

Retained earnings          125,000                   61,000         64,000

                                     $ 767,000             $ 653,000  

    

There was a purchase of Land for a new site for the period. That was the only increase in Plant assets.

    

The income statement for 2018 is as follows:

                   Sales                         $ 1,800,000

                   Cost of sales                   900,000

                   Gross profit                     900,000

                   Depreciation expense      90,000

                   Other expenses              620,000

                   Net income                  $ 190,000

Prepare a statement of cash flows for Marshals, Inc. for the year ended December 31, 2018.

Answer 1

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