Assets Cash $ 58,900 $ 79,500 Accounts receivable 74,830 56,625 Inventory 284,656 257,800 Prepaid expenses 1,270 2,015 Total current assets 419,656 395,940 Equipment 151,500 114,000 Accum. depreciation—Equipment (39,625 ) (49,000 ) Total assets $ 531,531 $ 460,940 Liabilities and Equity Accounts payable $ 59,141 $ 123,675 Short-term notes payable 11,800 7,200 Total current liabilities 70,941 130,875 Long-term notes payable 62,000 54,750 Total liabilities 132,941 185,625 Equity Common stock, $5 par value 171,750 156,250 Paid-in capital in excess of par, common stock 46,500 0 Retained earnings 180,340 119,065 Total liabilities and equity $ 531,531 $ 460,940 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 612,500 Cost of goods sold 291,000 Gross profit 321,500 Operating expenses Depreciation expense $ 26,750 Other expenses 138,400 165,150 Other gains (losses) Loss on sale of equipment (11,125 ) Income before taxes 145,225 Income taxes expense 32,650 Net income $ 112,575 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $11,125 (details in b). Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance. Borrowed $4,600 cash by signing a short-term note payable. Paid $53,125 cash to reduce the long-term notes payable. Issued 3,100 shares of common stock for $20 cash per share. Declared and paid cash dividends of $51,300.

Assets Cash $ 58,900 $ 79,500 Accounts receivable 74,830 56,625 Inventory 284,656 257,800 Prepaid expenses 1,270 2,015 Total current assets 419,656 395,940 Equipment 151,500 114,000 Accum. depreciation—Equipment (39,625 ) (49,000 ) Total assets $ 531,531 $ 460,940 Liabilities and Equity Accounts payable $ 59,141 $ 123,675 Short-term notes payable 11,800 7,200 Total current liabilities 70,941 130,875 Long-term notes payable 62,000 54,750 Total liabilities 132,941 185,625 Equity Common stock, $5 par value 171,750 156,250 Paid-in capital in excess of par, common stock 46,500 0 Retained earnings 180,340 119,065 Total liabilities and equity $ 531,531 $ 460,940 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 612,500 Cost of goods sold 291,000 Gross profit 321,500 Operating expenses Depreciation expense $ 26,750 Other expenses 138,400 165,150 Other gains (losses) Loss on sale of equipment (11,125 ) Income before taxes 145,225 Income taxes expense 32,650 Net income $ 112,575 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $11,125 (details in b). Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance. Borrowed $4,600 cash by signing a short-term note payable. Paid $53,125 cash to reduce the long-term notes payable. Issued 3,100 shares of common stock for $20 cash per share. Declared and paid cash dividends of $51,300.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 21E

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Question

Assets
Cash	$	58,900		$	79,500
Accounts receivable		74,830			56,625
Inventory		284,656			257,800
Prepaid expenses		1,270			2,015
Total current assets		419,656			395,940
Equipment		151,500			114,000
Accum. depreciation—Equipment		(39,625	)		(49,000	)
Total assets	$	531,531		$	460,940
Liabilities and Equity
Accounts payable	$	59,141		$	123,675
Short-term notes payable		11,800			7,200
Total current liabilities		70,941			130,875
Long-term notes payable		62,000			54,750
Total liabilities		132,941			185,625
Equity
Common stock, $5 par value		171,750			156,250
Paid-in capital in excess of par, common stock		46,500			0
Retained earnings		180,340			119,065
Total liabilities and equity	$	531,531		$	460,940

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales			$	612,500
Cost of goods sold				291,000
Gross profit				321,500
Operating expenses
Depreciation expense	$	26,750
Other expenses		138,400		165,150
Other gains (losses)
Loss on sale of equipment				(11,125	)
Income before taxes				145,225
Income taxes expense				32,650
Net income			$	112,575

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $11,125 (details in b).
Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash.
Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance.
Borrowed $4,600 cash by signing a short-term note payable.
Paid $53,125 cash to reduce the long-term notes payable.
Issued 3,100 shares of common stock for $20 cash per share.
Declared and paid cash dividends of $51,300.

For Current Year Ended December 31
Cash flows from operating activities
Cash paid for income taxes
Cash paid for inventory
Cash paid for other expenses
Cash received from customers
Net cash provided by operating activities
$
Cash flows from investing activities
Cash paid for equipment
Cash received from sale of equipment
Net cash used in investing activities
Cash flows from financing activities
Cash borrowed on short-term note
Cash paid for dividends
Cash paid on long-term note
Cash received from issuing stock
Net cash used in financing activities
Net increase (decrease) in cash
$
Cash balance at December 31, prior year
Cash balance at December 31, current year
$

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