Question

Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation:

Maris Corporation Income Statement Year Ended December 31, 20XX
Sales	$3,400,000
Cost of goods sold	1,950,000
Gross profits	1,450,000
Selling and administrative expense	600,000
Amortization expense	200,000
Operating income	650,000
Interest expense	50,000
Earnings before taxes	600,000
Taxes	400,000
Earnings after taxes	200,000
Preferred stock dividends	20,000
Earnings available to common shareholders	$180,000
Shares outstanding	100,000
Earnings per share	$1.80

  

Statement of Retained Earnings For the Year Ended December 31, 20XX
Retained earnings, balance, January 1, 20XX	$869,000
Add: Earnings available to common shareholders, 20XX	180,000
Deduct: Cash dividends declared and paid in 20XX	100,000
Retained earnings, balance, December 31, 20XX	$949,000

  

Comparative Balance Sheets For 20XX and 20XW
	December 31, 20XX			December 31, 20XW
Assets
Current assets:
Cash		$120,000			$39,000
Accounts receivable (net)		500,000			490,000
Inventory		620,000			600,000
Prepaid expenses		30,000			61,000
Total current assets		1,270,000			1,190,000
Investments (long-term securities)		80,000			90,000
Plant and equipment	2,400,000			2,000,000
Less: Accumulated depreciation	1,120,000			920,000
Net plant and equipment		1,280,000			1,080,000
Total assets		$2,630,000			$2,360,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$400,000			$251,000
Notes payable		500,000			500,000
Accrued expenses		41,000			50,000
Total current liabilities		941,000			801,000
Long-term liabilities:
Bonds payable, 20XY		150,000			100,000
Total liabilities		1,091,000			901,000
Shareholders’ equity:
Preferred stock		90,000			90,000
Common stock		500,000			500,000
Retained earnings		949,000			869,000
Total shareholders’ equity		1,539,000			1,459,000
Total liabilities and shareholders’ equity		$2,630,000			$2,360,000

  

Prepare a statement of cash flows for the Maris Corporation. (Amounts to be deducted should be indicated with a minus sign. Omit $ sign in your response.)

  

Answer 1

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