Changes in the balance sheet account balances for the Bubble Bobble Co. during 2015 follow. Dividends declared during 2015 were $15,000 . Calculate the net income for the year assuming that no transactions other than the dividends affected retained earnings. Increase(Decrease)Cash.$ 38,500Accounts ReceivableInventoryBuildings and Equipment (net).Patents.....Accounts Payable.Bonds Payable .Capital Stock...Additional Paid-In Capital.57,000(32,500)160,000(4,000)(45,000)135,00025,00035,000

Answered: Image /qna-images/answer/a6586c36-9074-4773-8fb5-989de05eccab.jpg

Changes in the balance sheet account balances for the Bubble Bobble Co. during 2015 follow. Dividends declared during 2015 were $15,000 . Calculate the net income for the year assuming that no transactions other than the dividends affected retained earnings.

Changes in the balance sheet account balances for the Bubble Bobble Co. during 2015 follow. Dividends declared during 2015 were $15,000 . Calculate the net income for the year assuming that no transactions other than the dividends affected retained earnings.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13MCQ

See similar textbooks

Related questions

Q: Current Assets - 2015 - $316 2016 - $450 Net Fixed Assets - 2015 $1260…

A: A balance sheet is the statement of the financial position which shows the balance of assets,…

Q: This information relates to Windsor, Inc. for the year 2017. Retained earnings, January 1, 2017…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Sandhill construction company earned $439,000 during the year ended June 30, 2017. After paying out…

A: Retained earnings refer to the amount earned by the organization till the date of preparation of the…

Q: The December 31, 2013, balance sheet of Schism, Inc., showed $120,0 00 in the common stock account…

A: Equity infused upto 2013 = E2013 = Common stock balance2013 + additional paid in surplus account2013…

Q: The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,730,000, and the…

A: The creditors are the outside parties to the companies to whom the business is yet to pay for goods…

Q: A firm's balance sheets for year-end 2011 and 2012 contain the following data. All items are in…

A: Formulas: Net working capital = Current assets - Current liabilities

Q: The Maddening Revenge Company’s account records show that changes in ledger account balances…

A: Particulars Amount Cash 800,000 Accounts receivable (net) -40000 Inventories…

Q: Blossom Construction Company earned $474,000 during the year ended June 30, 2017. After paying out…

A: Retained earnings are part of total earning which remain undisturbed after payment of preferred and…

Q: Heedy Company had the following account balances in 2016 and 2017, respectively. Assuming dividends…

A: Net income is the amount an individual or business makes after deducting costs, allowances and…

Q: Carla Vista Construction Company earned $409,000 during the year ended June 30, 2017. After paying…

A: Retained earnings: These are defined as the residual or left over income of the business after…

Q: The following information is available about a company's dividends: 2014 Sept. Final dividend for…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: During 2014, Canton Company's assets increased $97,500 and their liabilities decreased $37,300.…

A: As per accounting equation, assets equals to sum of liabilities and shareholders equity.

Q: Below are the restated amounts of net income and retained earnings for Volunteers Incorporated and…

A: Retained earnings refer to the portion of net income that has been accumulated by the entity over…

Q: Portman Corporation has retained earnings of $675,000 at January 1, 2017. Net income during 2017 was…

A: Retained earnings: The accumulated income is retained with the company for future needs. Retained…

Q: On December 31, 2015, the net assets of Martinez Manufacturing amounted to $40,000. Net income…

A: Net Assets on Dec 31, 2015 = Net Assets on Jan 1, 2015 + Net Income - Dividend paid + Issued Common…

Q: Construct a statement of retained earnings and compute the year-end balance of retained earnings

A: Oriole Paper Mill, Inc. Statement of retained earnings Details Amt($) Opening balance, 1.4.16…

Q: Willie Company's retained earnings increased $13,000 during 2014. What was Willie's 2014 net income…

A: 1. Retained Earnings - Retained Earnings is the retained accumulated profit of the company over the…

Q: Consider the following financial statements (in millions of $). In 2016, the company did not pay any…

A: Retained Earning - It is a portion of company's income / profit left over the business after making…

Q: The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.5 million, and…

A: Given the following information: Long term debt at the beginning: $5,500,000 Long term debt at the…

Q: Black Bulls Company reported a Retained Earnings balance of P150,000 on December 31, 2014. The…

A: Depreciation expense net of tax = Depreciation expense x (1 - tax rate) = 25000 * (1-0.25) = P18,750

Q: The following information is available for Tanaka Corporation. Compute earnings per share for 2018…

A: a. Compute earnings per share for 2018 and 2017 for T Corporation.

Q: The condensed financial statements of John Cully Company, for the years ended June 30, 2017 and…

Q: below iS selected finar Selected Balance Sheet Data December 31, 2016, 2015 Соса-Cola (S in…

A: Debt to assets ratio for year 2016 of Coca cola company =Total liabilities for year 2016Total Assets…

Q: a) What is the amount of total assets at the end of 2010? b) What is the amount of cash on hand…

A: Given: Issue of common stock $2,000 Service Revenue (On Credit) $8,000 Collection $6,000 Operating…

Q: On January 1, 2014, LeAnna Industries reported retained earnings of $195,000. During 2014, LeAnna…

A: Ending Retained earnings = Beginning Retained earnings - Net Loss - Dividend paid

Q: Portman Corporation has retained earnings of $675,000 at January 1, 2017. Net income during 2017 was…

A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…

Q: Towson Company’s Assets and Liabilities on January 1, 2016 were $85,600 and $62,400 respectively.…

A: Retained earnings are that part of profit which is reinvested in the business. It is the amount left…

Q: On December 31, 2016, Cantor Company reported Total Assets of $20,000 and Total equity of $15,000.…

Q: . Moody Instruments had retained earnings of $300,000 at December 31, 2017. Netincome for 2018…

A: Retained Earnings: When the company does not distribute all its earning amongst the shareholders as…

Q: what was the firm's 2018 operating cash flow, or OCF?

A: Operating Cash Flow: It is the amount of cash flow a firm generates from its normal business…

Q: Asure corp earned $339,000 during the year ended June 30, 2017. After paying out $225,794 in…

A: Ending retained earnings formula: =Beginning level of retained earnings + Net income of the year -…

Q: taxes): 2014 revenues were $80,500. 2014 net income was $34,500. Dividends declared and paid…

A: As per accounting equation, assets equals to sum of liabilities and shareholders equity.

Q: Presented below are the changes in the account balances of Wang Company during the year, except for…

A: For calculating retained earning balance , we need to draw a balance sheet . Any Net increase or…

Q: A company reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of…

A: Retained earning means the an account where all transaction related to profit earned , dividend…

Q: Please see below. All info is included. During 2017, Ivanhoe Company entered into the following…

A: The accounting equation states that assets equal to sum of liabilities and equity. It can be written…

Q: Blake Knudson owns and operates Grab Bag Delivery Services. On January 1, 2015, Retained Earnings…

A: Given that: On January 1, 2015, RetainedEarnings had a balance of $918,000. During the year, no…

Q: The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,280,000, $120,000…

A: Calculation of Operating Cash Flow during 2014:The firm’s operating cash flow during 2014 is…

Q: Below are the restated amounts of net income and retained earnings for Volunteers Inc. and Raiders…

A: Retained earnings is the amount left after deducting dividend paid from the net income.

Q: Carla Vista Construction Company earned $409,000 during the year ended June 30, 2017.After paying…

A: Closing balance of Retained Earnings = Opening balance of retained earnings + Net Income - Dividends

Q: Strong construction company earned $439,000 during the year ended June 30, 2017. After paying out…

A: Retained earnings are the amount which was retained by the company after all of its expenses…

Question

100%

Increase
(Decrease)
Cash.
$ 38,500
Accounts Receivable
Inventory
Buildings and Equipment (net).
Patents.....
Accounts Payable.
Bonds Payable .
Capital Stock...
Additional Paid-In Capital.
57,000
(32,500)
160,000
(4,000)
(45,000)
135,000
25,000
35,000

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Net Cash Flow from Operating Activities The following are accounting items taken from Tyrone Shoelaces Required: a. Net income, 22,900 b. Payment for purchase of land, 4,000 c. Payment for retirement of bonds, 6,000 d. Depreciation expense, 7,800 e. Receipt from issuance of common stock, 7,000 f. Patent amortization expense, 2,700 g. Increase in accounts receivable, 3,400 h. Payment of dividends, 5,000 i. Decrease in accounts payable, 2,600 Required: Prepare the operating activities section of Tyrones statement of cash flows using the indirect method.
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
Statement of Cash Flows The following are several items involving Tejera Companys cash flow activities: a. Net income, 60,400 b. Receipt from issuance of common stock, 32,000 c. Payment for purchase of equipment, 41,500 d. Payment for purchase of land, 19,600 e. Depreciation expense, 20,500 f. Patent amortization expense, 1,200 g. Payment of dividends, 21,000 h. Decrease in salaries payable, 2,600 i. Increase in accounts receivable, 10,300 j. Beginning cash balance, 30,700 Required: Prepare Tejeras statement of cash flows using the direct method.
Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.: a. Net income, 41,000 b. Payment of dividends, 16,000 c. Ten year, 28,000 bonds payable were issued at face value d. Depreciation expense, 11,000 e. Building acquired at a con of 40,000 f. Accounts receivable decreased by 2,000 g. Accounts payable decreased by 4,000 h. Equipment acquired at a cost of 8,000 i. Inventories increased by 7,000 j. Beginning cash balance, 13,000 Required: Prepare Rocky Horror Pictures statement of cash flows using the indirect method.
Statement of Cash Flows A list of Fischer Companys cash flow activities is presented here: a. Patent amortization expense, 3,500 b. Machinery was purchased for 39,500 c. At year-end, bonds payable with a face value of 20,000 were issued for 17,000 d. Net income, 47,200 k. Inventories increased by 15,400 e. Dividends paid, 16,000 f. Depreciation expense, 12,900 g. Preferred stock was issued for 13,600 h. Investments were acquired for 21,000 i. Accounts receivable increased by 4,300 j. Land was sold at cost, 11,000 k. Inventories increased by 15,400 l. Accounts payable increased by 2,700 m. Beginning cash balance, 19,400 Required: Prepare Fischers statement of cash flows.