ACCT 4100 Lecture Notes - Lecture 2: Equity Method, Income Statement, Financial Statement
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| WeaverCompany | ||||||
| Comparative Balance Sheet | ||||||
| 2014 | 2013 | |||||
| Assets | ||||||
| Cash | $9 | $15 | ||||
| A/R | 340 | 240 | ||||
| Inventory | 125 | 175 | ||||
| Prepaid Expenses | 10 | 6 | ||||
| Total current assets | 484 | 436 | ||||
| PPE | 610 | 470 | ||||
| Less accumulated depreciation | 93 | 85 | ||||
| Net PPE | 517 | 385 | ||||
| Long-term investments | 16 | 19 | ||||
| Total assets | $1,017 | $840 | ||||
| Liabliites and S/E | ||||||
| A/P | $310 | $230 | ||||
| Accrued Liablities | 60 | 72 | ||||
| Income taxes payable | 40 | 34 | ||||
| Total current liabilities | $410 | $336 | ||||
| Bonds payable | 290 | 180 | ||||
| Total liabilities | $700 | $516 | ||||
| Common Stock | 210 | 250 | ||||
| R/E | 107 | 74 | ||||
| Total S/E | 317 | 324 | ||||
| Total lliabilities and S/E | $1,017 | $840 | ||||
| Weaver Company | ||||||
| Income Statement | ||||||
| For the Year Ended December31, 2014 | ||||||
| Sales | $800 | |||||
| COGS | 500 | |||||
| Gross Margin | 300 | |||||
| Selling and admin.Expenses | 213 | |||||
| Net operating income | 87 | |||||
| Nonoperating items: | ||||||
| Gain on sale of investments | $7 | |||||
| Loss on sale of equipment | -4 | $3 | ||||
| Income before taxes | $90 | |||||
| Income taxes | 27 | |||||
| Net income | $63 | |||||
| During 2014, Weaver sold someequipment for $20 that had cost $40 and on which there | ||||||
| was accumulated depreciationof $16. In addition, the company sold long-term investments | ||||||
| for $10 that had cost $3 whenpurchased several years ago. A cash dividend was paid during | ||||||
| 2014 and the companyrepurchased $40 of its own stock. Weaver did not retire anybonds | ||||||
| during 2014. | ||||||
| Using the indirect method,prepare a statement of cash flows. | ||||||
| Weaver Company | ||||||
| Income Statement | ||||||
| For the Year Ended December31, 2014 | ||||||
| A comparative balance sheet and income statement for Groton Company follow: |
| Groton Company Comparative Balance Sheet December 31, 2011 and 2010 | ||||
| 2011 | 2010 | |||
| Assets | ||||
| Cash | $ | 1 | $ | 12 |
| Accounts receivable | 306 | 229 | ||
| Inventory | 158 | 196 | ||
| Prepaid expenses | 8 | 6 | ||
| Total current assets | 473 | 443 | ||
| Property, plant, and equipment | 509 | 430 | ||
| Less accumulated depreciation | (85) | (71) | ||
| Net property, plant, and equipment | 424 | 359 | ||
| Long-term investments | 25 | 32 | ||
| Total assets | $ | 922 | $ | 834 |
| Liabilities and Stockholders' equity | ||||
| Accounts payable | $ | 301 | $ | 225 |
| Accrued liabilities | 70 | 80 | ||
| Income taxes payable | 72 | 63 | ||
| Total current liabilities | 443 | 368 | ||
| Bonds payable | 198 | 172 | ||
| Total liabilities | 641 | 540 | ||
| Common stock | 163 | 202 | ||
| Retained earnings | 118 | 92 | ||
| Total stockholdersâ equity | 281 | 294 | ||
| Total liabilities and stockholders' equity | $ | 922 | $ | 834 |
| Groton Company Income Statement For the Year Ended December 31, 2011 | ||||
| Sales | $ | 754 | ||
| Cost of goods sold | 448 | |||
| Gross margin | 306 | |||
| Selling and administrative expenses | 222 | |||
| Net operating income | 84 | |||
| Non operating items: | ||||
| Gain on sale of investments | $ | 6 | ||
| Loss on sale of equipment | (2) | 4 | ||
| Income before taxes | 88 | |||
| Income taxes | 23 | |||
| Net income | $ | 65 | ||
| During 2011, Groton sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011. |
