ACC 311 Chapter Notes - Chapter 12: Cash Flow Statement, Current Liability, Retained Earnings
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The balance sheet for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 | ||||
2018 | 2017 | |||
Assets: | ||||
Current assets: | ||||
Cash | $ | 142,950 | $ | 154,000 |
Accounts receivable | 76,800 | 90,500 | ||
Inventory | 92,000 | 77,300 | ||
Prepaid rent | 3,400 | 1,700 | ||
Long-term assets: | ||||
Land | 465,000 | 465,000 | ||
Equipment | 762,000 | 655,000 | ||
Accumulated depreciation | (421,000) | (262,000) | ||
Total assets | $ | 1,121,150 | $ | 1,181,500 |
Liabilities and Stockholders' Equity: | ||||
Current liabilities: | ||||
Accounts payable | $ | 96,000 | $ | 82,300 |
Interest payable | 6,750 | 13,500 | ||
Income tax payable | 7,400 | 4,700 | ||
Long-term liabilities: | ||||
Notes payable | 112,500 | 225,000 | ||
Stockholders' equity: | ||||
Common stock | 685,000 | 685,000 | ||
Retained earnings | 213,500 | 171,000 | ||
Total liabilities and stockholders' equity | $ | 1,121,150 | $ | 1,181,500 |
Additional Information for 2018:
1. Net income is $66,000.
2. The company purchases $107,000 in equipment.
3. Depreciation expense is $159,000.
4. The company repays $112,500 in notes payable.
5 .The company declares and pays a cash dividend of $23,500.
Required:
Prepare the statement of cash flows using the indirect method.
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The balance sheet for Plasma Screens Corporation along with additional information, are provided below:
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 | ||||
2018 | 2017 | |||
Assets: | ||||
Current assets: | ||||
Cash | $ | 82,000 | $ | 120,000 |
Accounts receivable | 72,000 | 96,000 | ||
Inventory | 65,000 | 80,000 | ||
Prepaid rent | 5,000 | 4,000 | ||
Long-term assets: | ||||
Land | 500,000 | 500,000 | ||
Equipment | 800,000 | 600,000 | ||
Accumulated depreciation | (380,000) | (300,000) | ||
Total assets | $ | 1,144,000 | $ | 1,100,000 |
Liabilities and Stockholders' Equity: | ||||
Current liabilities: | ||||
Accounts payable | $ | 78,000 | $ | 82,000 |
Interest payable | 5,000 | 9,000 | ||
Income tax payable | 9,000 | 7,000 | ||
Long-term liabilities: | ||||
Notes payable | 75,000 | 150,000 | ||
Stockholders' equity: | ||||
Common stock | 600,000 | 600,000 | ||
Retained earnings | 377,000 | 252,000 | ||
Total liabilities and stockholders' equity | $ | 1,144,000 | $ | 1,100,000 |
Additional Information for 2018:
1. Net income is $160,000.
2. The company purchases $200,000 in equipment.
3. Depreciation expense is $80,000.
4. The company repays $75,000 in notes payable.
5. The company declares and pays a cash dividend of $35,000.
Prepare the statement of cash flows using the indirect method.
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