The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 450,000.00 400,000.00 5 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders’ Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 13 Accrued expenses payable (operating expenses) 45,000.00 50,000.00 14 Dividends payable 30,000.00 25,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital in excess of par—common stock 200,000.00 175,000.00 17 Retained earnings 1,360,000.00 950,000.00 18 Total liabilities and stockholders’ equity $2,675,000.00 $2,100,000.00 The income statement for the year ended December 31, 20Y3, is as follows: 1 Sales $3,000,000.00 2 Cost of goods sold (1,400,000.00) 3 Gross profit $1,600,000.00 4 Operating expenses: 5 Depreciation expense $100,000.00 6 Other operating expenses 950,000.00 7 Total operating expenses (1,050,000.00) 8 Operating income $550,000.00 9 Other income: 10 Gain on sale of investments 75,000.00 11 Income before income tax $625,000.00 12 Income tax expense (125,000.00) 13 Net income $500,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets 3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 450,000.00 400,000.00 5 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders’ Equity 12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 13 Accrued expenses payable (operating expenses) 45,000.00 50,000.00 14 Dividends payable 30,000.00 25,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital in excess of par—common stock 200,000.00 175,000.00 17 Retained earnings 1,360,000.00 950,000.00 18 Total liabilities and stockholders’ equity $2,675,000.00 $2,100,000.00 The income statement for the year ended December 31, 20Y3, is as follows: 1 Sales $3,000,000.00 2 Cost of goods sold (1,400,000.00) 3 Gross profit $1,600,000.00 4 Operating expenses: 5 Depreciation expense $100,000.00 6 Other operating expenses 950,000.00 7 Total operating expenses (1,050,000.00) 8 Operating income $550,000.00 9 Other income: 10 Gain on sale of investments 75,000.00 11 Income before income tax $625,000.00 12 Income tax expense (125,000.00) 13 Net income $500,000.00 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $90,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...
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The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:
1
|
|
Dec. 31, 20Y3
|
Dec. 31, 20Y2
|
2
|
Assets
|
|
|
3
|
Cash
|
$155,000.00
|
$150,000.00
|
4
|
|
450,000.00
|
400,000.00
|
5
|
Inventories
|
770,000.00
|
750,000.00
|
6
|
Investments
|
0.00
|
100,000.00
|
7
|
Land
|
500,000.00
|
0.00
|
8
|
Equipment
|
1,400,000.00
|
1,200,000.00
|
9
|
|
(600,000.00)
|
(500,000.00)
|
10
|
Total assets
|
$2,675,000.00
|
$2,100,000.00
|
11
|
Liabilities and
|
|
|
12
|
Accounts payable (merchandise creditors)
|
$340,000.00
|
$300,000.00
|
13
|
Accrued expenses payable (operating expenses)
|
45,000.00
|
50,000.00
|
14
|
Dividends payable
|
30,000.00
|
25,000.00
|
15
|
Common stock, $4 par
|
700,000.00
|
600,000.00
|
16
|
Paid-in capital in excess of par—common stock
|
200,000.00
|
175,000.00
|
17
|
|
1,360,000.00
|
950,000.00
|
18
|
Total liabilities and stockholders’ equity
|
$2,675,000.00
|
$2,100,000.00
|
The income statement for the year ended December 31, 20Y3, is as follows:
1
|
Sales
|
|
$3,000,000.00
|
2
|
Cost of goods sold
|
|
(1,400,000.00)
|
3
|
Gross profit
|
|
$1,600,000.00
|
4
|
Operating expenses:
|
|
|
5
|
Depreciation expense
|
$100,000.00
|
|
6
|
Other operating expenses
|
950,000.00
|
|
7
|
Total operating expenses
|
|
(1,050,000.00)
|
8
|
Operating income
|
|
$550,000.00
|
9
|
Other income:
|
|
|
10
|
Gain on sale of investments
|
|
75,000.00
|
11
|
Income before income tax
|
|
$625,000.00
|
12
|
Income tax expense
|
|
(125,000.00)
|
13
|
Net income
|
|
$500,000.00
|
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
a. The investments were sold for $175,000 cash. | |
b. Equipment and land were acquired for cash. | |
c. There were no disposals of equipment during the year. | |
d. The common stock was issued for cash. | |
e. There was a $90,000 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows , using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
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