Homework Help is Here – Start Your Trial Now!
Business
Accounting
SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets $ 26,300 Current Assets: $ 15,400 Cash 26,400 25,100 Accounts Receivable 79,300 91,300 Merchandise Inventory Long-term Assets: 34,900 14,000 Land 115,790 108,330 Plant Assets (19,890) (18,630) Accumulated Depreciation-Plant Assets $ 262,800 $ 235,500 Total Assets Liabilities Current Liabilities: $ 35,600 $ 30,100 Accounts Payable 28,900 30,800 Accrued Liabilities Long-term Liabilities: 78,000 105,000 Notes Payable 142,500 165,900 Total Liabilities Stockholders' Equity 88,200 64,800 Common Stock, no par 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity $ 262,800 $ 235,500 Total Liabilities and Stockholders' Equity Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long- term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,240. Plant asset was acquired for cash. Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment?

SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets $ 26,300 Current Assets: $ 15,400 Cash 26,400 25,100 Accounts Receivable 79,300 91,300 Merchandise Inventory Long-term Assets: 34,900 14,000 Land 115,790 108,330 Plant Assets (19,890) (18,630) Accumulated Depreciation-Plant Assets $ 262,800 $ 235,500 Total Assets Liabilities Current Liabilities: $ 35,600 $ 30,100 Accounts Payable 28,900 30,800 Accrued Liabilities Long-term Liabilities: 78,000 105,000 Notes Payable 142,500 165,900 Total Liabilities Stockholders' Equity 88,200 64,800 Common Stock, no par 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity $ 262,800 $ 235,500 Total Liabilities and Stockholders' Equity Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long- term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,240. Plant asset was acquired for cash. Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment?

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.10E
See similar textbooks
icon
Related questions
Question
SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets $ 26,300 Current Assets: $ 15,400 Cash 26,400 25,100 Accounts Receivable 79,300 91,300 Merchandise Inventory Long-term Assets: 34,900 14,000 Land 115,790 108,330 Plant Assets (19,890) (18,630) Accumulated Depreciation-Plant Assets $ 262,800 $ 235,500 Total Assets Liabilities Current Liabilities: $ 35,600 $ 30,100 Accounts Payable 28,900 30,800 Accrued Liabilities Long-term Liabilities: 78,000 105,000 Notes Payable 142,500 165,900 Total Liabilities Stockholders' Equity 88,200 64,800 Common Stock, no par 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity $ 262,800 $ 235,500 Total Liabilities and Stockholders' Equity Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long- term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,240. Plant asset was acquired for cash. Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment?
Transcribed Image Text:SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets $ 26,300 Current Assets: $ 15,400 Cash 26,400 25,100 Accounts Receivable 79,300 91,300 Merchandise Inventory Long-term Assets: 34,900 14,000 Land 115,790 108,330 Plant Assets (19,890) (18,630) Accumulated Depreciation-Plant Assets $ 262,800 $ 235,500 Total Assets Liabilities Current Liabilities: $ 35,600 $ 30,100 Accounts Payable 28,900 30,800 Accrued Liabilities Long-term Liabilities: 78,000 105,000 Notes Payable 142,500 165,900 Total Liabilities Stockholders' Equity 88,200 64,800 Common Stock, no par 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity $ 262,800 $ 235,500 Total Liabilities and Stockholders' Equity Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long- term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,240. Plant asset was acquired for cash. Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method. 2. How will what you learned in this problem help you evaluate an investment?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS