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Glenn Corporation had the following list of accountbalances for the year ended December 31, 2013.

Please show all work

Net Sales

$1,650,000

Cash

$300,000

Accounts Receivable

140,000

Operating Expenses

840,000

Equipment

420,000

Common Stock

170,000

Accounts Payable

120,000

Interest Income

32,000

Accumulated Depreciation

40,000

Cost of Goods Sold

510,000

Inventories

20,000

Prepaid Rent

20,000

Income Taxes Payable

50,000

Income Taxes Expense

99,000

Notes Payable

Dividends

Interest Expense

200,000

5,000

2,000

Retained Earnings, January 1,2013

94,000

Required:

Calculate the gross margin for the year endingDecember 31, 2013.

Calculate ending retainedearnings for the year ending December 31, 2013.

Calculate current assets on December 31,2013.

Calculate total stockholders’ equity onDecember 31, 2013.

Calculate net income for the year endingDecember 31, 2013.

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Elin Hessel
Elin HesselLv2
28 Sep 2019

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Glenn Corporation had the following list of account balances for the year ended December 31,2016. Net Sales $1,650,000 Cash $300,000 Accounts Receivable 140,000 Operating Expenses 840,000 Equipment 420,000 Common Stock 170,000 Accounts Payable 120,000 Interest Income 32,000 Accumulated Depreciation 40,000 Gross Profit 1,140,000 Inventories 20,000 Prepaid Rent 20,000 Unearned Revenue 50,000 incomeTaxes Expense 99,000 Notes Payable Dividends Interest Expense 200,000 5,000 2,000vRetained Earnings, January 1, 2016 94,000 Required: 1. Calculate the cost of goods sold for the year ended December 31, 2016. 2. Calculate ending retained earnings for the year ended December 31, 2016. 3. Calculate current assets on December 31, 2016. 4. Calculate total liabilities on December 31, 2016. 5. Calculate net income for the year ended December 31, 2016.

Problem 1.

The accountant for Farly Corporation prepared the following listfrom the company’s accounting records for the year ended December31, 2014:

Sales Revenue $165,000 Cash $30,000

Accounts receivable $14,000 Selling expenses $44,000

Equipment $42,000 Common stock $17,000

Accounts Payable $12,000 Interest income $3,000

Salaries and wages expense $40,000 Cost of goods sold $51,000

Inventories $22,000 Prepaid expenses $2,000

Income taxes payable $5,000 Income taxesexpense $18,000

Notes payable $20,000 Retainedearnings ???

A.Prepare an Income Statement forFarly Corporation for Year Ended December 31, 2014.

B.Prepare a Balance Sheet for FarlyCorporation as of December 31, 2014.

C.What was the amount of Retainedearnings for Farly Corporation at the end of 2014?

Problem 2:

Hana, Inc. reported $52,000 of net income for 2013. Hana’sbalance sheet at December 31, 2014 includes the followingaccounts:

Wages payable $1,000

Inventory $26,000

Prepaid rent $3,000

Land $40,000

Cash $15,000

Accounts receivable $22,000

Accounts payable $25,000

Capital stock $40,000

Retained earnings $29,000

Income taxes payable $11,000

A.Determine the current ratio andworking capital of Hana.

B.Beyond the information provided inyour answer to part A, what does the composition of the currentassets tell you about
Hana’s liquidity?

C.What other information do you needto fully assess Hana’s liquidity? Why is liquidity important?

Problem 13-23 Kate Petusky prepared Addison Controls’ balancesheet and income statement for 2013. Before she could complete thestatement of cash flows, she had to leave town to attend to afamily emergency. Because the full set of statements must beprovided to the auditors today, Addison’s president, Lance Meyers,has asked you to prepare the statement of cash flows. Meyers hasprovided you with the balance sheets and income statement thatPetusky prepared, as well as some notes she made: Addison ControlsIncome Statement For the Year Ended December 31, 2013 Sales revenue$ 128,900 Cost of goods sold 70,870 Gross margin 58,030 Sellingexpense $13,440 Administrative expense 8,330 Salaries expense20,380 Depreciation expense 1,900 Interest expense 4,470 48,520Income before gain and taxes 9,510 Gain on sale of Land 919 Incometax expense 850 Net income $ 9,579 Addison Controls ComparativeBalance Sheets As of December 31 2013 2012 Cash $ 5,330 $ 4,250Accounts receivable, net 6,360 5,550 Inventory 31,970 34,370 Totalcurrent assets 43,660 44,170 Property, plant, & equipment, net211,630 215,420 Total Assets $ 255,290 $ 259,590 Accounts payable $3,480 $ 6,140 Accrued expenses 2,510 2,490 Taxes payable 2,1702,870 Bonds payable 60,070 50,070 Total liabilities 68,230 61,570Common stock 125,370 125,370 Retained earnings 61,690 72,650 Totalstockholders’ equity 187,060 198,020 Total liabilities &stockholders’ equity $ 255,290 $ 259,590 • Equipment with anoriginal cost of $35,110 was sold for $20,369. The book value ofthe equipment was $19,450. • On June 1, 2013, the company purchasednew equipment for cash at a cost of $17,560. • At the end of theyear the company issued bonds payable for $10,000 cash. The bondswill mature on December 31, 2017. • The company paid $20,539 incash dividends for the year. Using the indirect method, prepareAddison Controls' statement of cash flows for 2013. (If an amountdecreases cash flow then enter with a negative sign preceding thenumber or parenthesis, e.g. -15,000 or (15,000).) 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inaccrued expenses Cash dividends on common stock Decrease in incometaxes payable Decrease in inventories Increase in income taxespayable Net income / (loss) Sale of equipment Increase ininventories Depreciation Gain on sale of land Increase in accountsreceivable Decrease in accounts payable $ Sale of equipmentDecrease in accrued expenses Decrease in accounts payable Decreasein income taxes payable Increase in accounts receivable Increase inincome taxes payable Increase in accounts payable Purchase ofequipment Increase in accrued expenses Net income / (loss) Issuebonds Cash dividends on common stock Depreciation Gain on sale ofland Decrease in accounts receivable Increase in inventoriesDecrease in inventories Issue bonds Gain on sale of land Net income/ (loss) Sale of equipment Cash dividends on common stock Increasein accounts payable Decrease in accrued expenses Purchase ofequipment Increase in inventories Decrease in income taxes payableDepreciation Increase in accounts receivable Decrease in accountspayable Decrease in inventories Decrease in accounts receivableIncrease in income taxes payable Increase in accrued expensesDecrease in accrued expenses Sale of equipment Increase ininventories Decrease in accounts receivable Purchase of equipmentIncrease in accrued expenses Decrease in income taxes payable Issuebonds Depreciation Gain on sale of land Cash dividends on commonstock Increase in accounts receivable Decrease in inventories Netincome / (loss) Decrease in accounts payable Increase in accountspayable Increase in income taxes payable Increase in accruedexpenses Purchase of equipment Issue bonds Sale of equipmentDecrease in accounts payable Cash dividends on common stock Gain onsale of land Net income / (loss) Decrease in accrued expensesDepreciation Increase in accounts receivable Decrease in accountsreceivable Decrease in inventories Increase in inventories Decreasein income taxes payable Increase in accounts payable Increase inincome taxes payable 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operatinginvestingfinancingactivities Change in cashAdjustments to net incomeCash, beginningbalanceCash, ending balanceCash flows from financing activitiesCashflows from operating activitiesCash flows from investing activitiesIncrease in income taxes payable Purchase of equipment Decrease inaccounts payable Issue bonds Decrease in inventories Cash dividendson common stock Net income / (loss) Depreciation Increase ininventories Increase in accounts receivable Sale of equipmentDecrease in income taxes payable Increase in accounts payable Gainon sale of land Increase in accrued expenses Decrease in accruedexpenses Decrease in accounts receivable Decrease in accountspayable Net income / (loss) Sale of equipment Increase in incometaxes payable Increase in accounts receivable Decrease in accruedexpenses Increase in inventories Decrease in accounts receivableCash dividends on common stock Increase in accrued expensesDecrease in income taxes payable Decrease in inventories Increasein accounts payable Purchase of equipment Depreciation Issue bondsGain on sale of land Net cash usedprovided byoperatinginvestingfinancing activities Cash flows from investingactivitiesCash flows from financing activitiesChange in cashCash,ending balanceCash flows from operating activitiesCash, beginningbalanceAdjustments to net income Cash, ending balanceCash flowsfrom operating activitiesCash flows from investing activitiesCashflows from financing activitiesAdjustments to net incomeChange incashCash, beginning balance Change in cashCash flows from investingactivitiesCash flows from financing activitiesCash, beginningbalanceCash flows from operating activitiesCash, endingbalanceAdjustments to net income $

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