Question

In: Accounting

Marin Inc., a greeting card company, had the following statements prepared as of December 31, 2017....

Marin Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

MARIN INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash

$6,000

$6,900

Accounts receivable

61,800

50,900

Short-term debt investments (available-for-sale)

35,200

17,900

Inventory

40,300

60,600

Prepaid rent

5,100

3,900

Equipment

155,100

131,300

Accumulated depreciation—equipment

(35,200

)

(24,800

)

Copyrights

45,800

50,400

Total assets

$314,100

$297,100

Accounts payable

$45,600

$40,000

Income taxes payable

4,000

6,000

Salaries and wages payable

8,100

4,000

Short-term loans payable

7,900

10,000

Long-term loans payable

60,500

68,900

Common stock, $10 par

100,000

100,000

Contributed capital, common stock

30,000

30,000

Retained earnings

58,000

38,200

Total liabilities & stockholders’ equity

$314,100

$297,100

MARIN INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue

$336,275

Cost of goods sold

173,300

Gross profit

162,975

Operating expenses

121,200

Operating income

41,775

Interest expense

$11,400

Gain on sale of equipment

2,000

9,400

Income before tax

32,375

Income tax expense

6,475

Net income

$25,900


Additional information:

1. Dividends in the amount of $6,100 were declared and paid during 2017.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2017.


Prepare a statement of cash flows using the direct method

Solutions

Expert Solution

WN 1

Operating expenses $   121,200
Less: Depreciation expense (35200+(19900*70%)-$24800) $   (24,330)
Less: Amortization expense (50400-45800) $     (4,600)
Less: Increase in salaries and wages payable   $     (4,100)
Add: Increase in prepaid rent $       1,200
Cash paid for operating expense $     89,370
MARIN INC
Statement of Cash flows
For the Year Ended December 31, 2017
Cash flows from operating activities
Cash received from customers $    325,375 336275+50900-61800
Cash paid to suppliers $ (147,400) 173300+40000-45600+40300-60600
Cash paid for operating expenses (WN 1) $    (89,370)
Cash paid for interest expense $    (11,400)
Cash paid for income tax expenses $       (8,475) 6475+6000-4000
Net cash provided by operating activities $    68,730
Cash flows from investing activities
Purchase of equipment $    (43,700) 131300-155100-19900
Cash paid for short term investments $    (17,300) 17900-35200
Sale of equipment $         7,970 (19900*30%)+2000
Net cash used by investing activities $ (53,030)
Cash flows from financing activities
Cash paid for short term loans payable $       (2,100)
Cash paid for long term loans payable $       (8,400)
Payment of dividends $       (6,100)
Net cash used by financing activities $ (16,600)
Net Decrease in cash   $        (900)
Cash and cash equivalents at beginning of period $       6,900
Cash and cash equivalents at end of period $       6,000

You can reach me over comment box if you have any doubts. Please rate this answer


Related Solutions

Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Buffalo Inc., a greeting card company, had the following statements prepared as of December 31, 2017. BUFFALO INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100 $7,100 Accounts receivable 62,400 51,000 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,400 60,300 Prepaid rent 4,900 4,000 Equipment 154,100 130,600 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 46,400 49,800 Total assets $314,100 $296,100 Accounts payable $46,500 $40,200 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
Skysong Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Skysong Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SKYSONG INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40,000 60,500 Prepaid rent 5,000 4,100 Equipment 152,900 131,100 Accumulated depreciation—equipment (35,200 ) (25,100 ) Copyrights 45,800 50,000 Total assets $310,800 $297,300 Accounts payable $46,100 $40,100 Income taxes payable 3,900 5,900 Salaries and wages payable 8,000...
Swifty Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Swifty Inc., a greeting card company, had the following statements prepared as of December 31, 2017. SWIFTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100 $6,900 Accounts receivable 61,900 50,600 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,000 59,400 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (25,100 ) Copyrights 46,100 50,400 Total assets $311,700 $293,200 Accounts payable $45,800 $40,100 Income taxes payable 3,900 6,000 Salaries and wages payable 8,100...
Grouper Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Grouper Inc., a greeting card company, had the following statements prepared as of December 31, 2017. GROUPER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 Accounts payable $45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
Flint Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Flint Inc., a greeting card company, had the following statements prepared as of December 31, 2017. FLINT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $6,900 Accounts receivable 61,800 50,900 Short-term debt investments (available-for-sale) 35,200 17,900 Inventory 40,300 60,600 Prepaid rent 5,100 3,900 Equipment 155,100 131,300 Accumulated depreciation—equipment (35,200 ) (24,800 ) Copyrights 45,800 50,400 Total assets $314,100 $297,100 Accounts payable $45,600 $40,000 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
Monty Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Monty Inc., a greeting card company, had the following statements prepared as of December 31, 2017. MONTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $7,000 Accounts receivable 62,500 51,200 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 60,100 Prepaid rent 5,100 3,900 Equipment 155,200 130,400 Accumulated depreciation—equipment (34,700 ) (25,200 ) Copyrights 45,500 50,400 Total assets $314,600 $295,700 Accounts payable $46,100 $39,900 Income taxes payable 4,100 6,000 Salaries and wages payable 8,000...
Wildhorse Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Wildhorse Inc., a greeting card company, had the following statements prepared as of December 31, 2017. WILDHORSE 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 51,200 Short-term debt investments (available-for-sale) 34,700 18,000 Inventory 40,200 59,700 Prepaid rent 5,000 4,100 Equipment 152,700 130,200 Accumulated depreciation—equipment (35,400 ) (25,000 ) Copyrights 45,700 49,900 Total assets $310,200 $295,000 Accounts payable $46,300 $40,400 Income taxes payable 3,900 6,000 Salaries and wages payable 8,100...
Nash Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Nash Inc., a greeting card company, had the following statements prepared as of December 31, 2017. NASH INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 Accounts payable $45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
Monty Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Monty Inc., a greeting card company, had the following statements prepared as of December 31, 2017. MONTY INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016                                                                                                                                                                12/31/17           12/32/16                                                                                                                              Cash                                                                                                                                        $6,000                 $7,000 Accounts receivable 61,800 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800                  59,400 Prepaid rent                                                                                                                          4,900                      4,000 Equipment                                                                                                                             153,100              130,500 Accumulated depreciation—equipment (35,000)             (24,700) Copyrights                                                                                                                             45,900                 50,500 Total assets                                                                                                                          $311,800            $295,300 Accounts payable                                                                                                               $46,000                $39,700 Income taxes payable                   ...
Kingbird Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Kingbird Inc., a greeting card company, had the following statements prepared as of December 31, 2017. KINGBIRD INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016                                                                                                                                            12/31/17                12/31/16 Cash                                                                                                                      $6,000                     $7,100 Accounts receivable                                                                                          61,400                     51,500 Short-term debt investments (available-for-sale)                                                     34,600                    18,000 Inventory                                                                                                             40,300                     60,200 Prepaid rent                                                                                                        4,900                          4,000 Equipment                                                                                                          152,400                  130,600 Accumulated depreciation—equipment                                                                    (34,800)                  (25,200) Copyrights                                                                                                            45,700                    49,800 Total assets                                                                                                      $310,500                 $296,000 Accounts payable                                                                                             $46,100                     $40,300...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT