Question

In: Accounting

The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of...

The comparative balance sheets and an income statement for Raceway Corporation follow.

Balance Sheets
As of December 31
Year 2 Year 1
Assets
Cash $ 71,084 $ 41,770
Accounts receivable 30,368 22,270
Merchandise inventory 156,692 172,360
Prepaid rent 2,460 4,920
Equipment 260,140 287,240
Accumulated depreciation (148,440 ) (239,840 )
Land 192,720 80,320
Total assets $ 565,024 $ 369,040
Liabilities
Accounts payable (inventory) $ 61,746 70,040
Salaries payable 33,367 28,600
Stockholders’ equity
Common stock, $50 par value 251,500 198,500
Retained earnings 218,411 71,900
Total liabilities and equity $ 565,024 $ 369,040
Income Statement
For the Year Ended December 31, Year 2
Sales $ 1,499,000
Cost of goods sold (796,669 )
Gross profit 702,331
Operating expenses
Depreciation expense (21,400 )
Rent expense (24,340 )
Salaries expense (251,660 )
Other operating expenses (258,420 )
Net income $ 146,511


Other Information

  1. Purchased land for $112,400.
  2. Purchased new equipment for $104,900.
  3. Sold old equipment that cost $132,000 with accumulated depreciation of $112,800 for $19,200 cash.
  4. Issued common stock for $53,000.


Required
Prepare the statement of cash flows for Year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow:
The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow:Marine CorporationBalance SheetAssets20182019Cash$45,000$50,000Marketable Securities175,000160,000Accounts Receivable240,000220,000Inventories230,000275,000Investments70,00055,000Total current assets$760,000$760,000Plant and Equipment1,300,0001,550,000Less Accumulated Amortization450,000600,000Net plant and Equipment$850,000$950,000Total Assets1,610,0001,710,000LIABILITIES AND SHAREHOLDERS’ EQUITYAccounts payable$110,000$85,000Notes payable65,00010,000Accrued Expenses30,0005,000Income Taxes Payable5,00010,000Bonds Payable (2016)800,000900,000Common Stock (100,000 shares)200,000200,000Retained Earnings400,000500,000Total Liabilities’ and Shareholders’ Equity$1,610,000$1,710,000Marine CorporationIncome StatementFor the Year Ended December 31, 2019Sales$ 5,500,000Less: Cost of Goods Sold4,200,000Gross Profit1,300,000Less: Selling, General & Administrative Expenses260,000Operating profit1,040,000Less: Amortization Expense150,000Earnings Before Interest and Taxes890,000Less: Interest Expense90,000Earnings Before Taxes800,000Less: Taxes (50%)400,000Net Income$...
Rainbow Company’s income statement and comparative balance sheets follow.
  Preparing a Statement of Cash Flows (Indirect Method) Rainbow Company’s income statement and comparative balance sheets follow. RAINBOW COMPANYIncome StatementFor Year Ended December 31, 2016   Sales   $750,000   Dividend Income   15,000   Total Revenue   765,000   Cost of Goods Sold $440,000     Wages and Other Operating Expenses 130,000     Depreciation Expense 39,000     Patent Amortization Expense 7,000     Interest Expense 13,000     Income Tax Expense 44,000     Loss on...
The Jenkins Corporation prepared the following statement of income and comparative balance sheets: JENKINS CORPORATION Income...
The Jenkins Corporation prepared the following statement of income and comparative balance sheets: JENKINS CORPORATION Income Statement For the Year Ended December 31, 2021 Sales                                                           $975,000      Less: Cost of Goods Sold                      467,000 Gross Profit                                                   508,000      Less: Depreciation expense                      68,600                 Other operating expenses                92,500      Plus:   Gain on Sale of Equipment              55,000 Income Before Taxes                                     401,000 Income Taxes                                                  60,000 Net Income                                                  $341,900 JENKINS CORPORATION Balance Sheet December 31            Assets        2021                     2020 Cash       ...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 25,779 $ 2,523 Accounts receivable 2,158 1,295 Inventory 6,559 6,149 Equipment 18,948 43,638 Accumulated depreciation—equipment (7,717 ) (17,493 ) Land 19,647 9,607 Total assets $ 65,374 $ 45,719 Liabilities and equity Accounts payable (inventory) $ 2,552 $ 4,122 Long-term debt 2,728 6,236 Common stock 24,100 10,000 Retained earnings 35,994 25,361 Total liabilities and equity $ 65,374...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December...
The comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December 31 2017 2016   Assets      Cash $ 23,243 $ 2,651      Accounts receivable 2,237 1,342      Inventory 6,202 5,814      Equipment 22,837 44,607      Accumulated depreciation—equipment (9,806 ) (16,588 )      Land 14,214 8,184   Total assets $ 58,927 $ 46,010   Liabilities and equity      Accounts payable (inventory) $ 2,671 $ 4,315      Long-term debt 2,695 6,160      Common stock 20,700 10,500      Retained earnings 32,861 25,035   Total liabilities and equity $ 58,927 $ 46,010...
The comparative balance sheets and income statements for Munoz Company follow: Balance Sheets As of December...
The comparative balance sheets and income statements for Munoz Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 22,554 $ 2,987 Accounts receivable 1,813 1,088 Inventory 6,503 6,097 Equipment 19,699 43,369 Accumulated depreciation—equipment (5,974 ) (15,475 ) Land 19,269 9,039 Total assets $ 63,864 $ 47,105 Liabilities and equity Accounts payable (inventory) $ 2,738 $ 4,423 Long-term debt 2,860 6,538 Common stock 25,200 11,500 Retained earnings 33,066 24,644 Total liabilities and equity $ 63,864...
Forten Company's current year income statement, comparative balance sheets, and additional information follow.
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANYComparative Balance SheetsDecember 31   Current Year   Prior Year Assets  ...
Forten Company's current year income statement, comparative balance sheets, and additional information follow.
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash...
2. Following is comparative balance sheets for Jones Corporation. An income statement appears as well. Balance...
2. Following is comparative balance sheets for Jones Corporation. An income statement appears as well. Balance Sheet End of 2007   2008    Cash 50,000 16,000 A/R 60,000 75,000 Inventory 90,000 100,000 Fixed Assets                                            500,000                          700,000        Less Accumulated Depr.                         200,000                           230,000        Net Fixed Assets                          300,000                          470,000            Total Assets 500,000 661,000 Accounts Payable 50,000 55,000 Bonds Payable 100,000 90,000 Common Stock 100,000 100,000 Capital paid in excess of Par 75,000 75,000 Retained Earnings 175,000 341,000 Total Liabilities and Stockholder's...
Statement of Cash Flows (Direct Method) Wolff Company's income statement and comparative balance sheets follow. WOLFF...
Statement of Cash Flows (Direct Method) Wolff Company's income statement and comparative balance sheets follow. WOLFF COMPANY Income Statement For Year Ended December 31, 2019 Sales $635,000 Cost of goods sold $430,000 Wages expense 86,000 Insurance expense 8,000 Depreciation expense 17,000 Interest expense 9,000 Income tax expense 29,000 579,000 Net income $56,000 WOLFF COMPANY Balance Sheet Dec. 31, 2019 Dec. 31, 2018 Assets Cash $11,000 $5,000 Accounts receivable 41,000 32,000 Inventory 90,000 60,000 Prepaid insurance 5,000 7,000 PPE 250,000 195,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT