FIN. ACCT. CUSTOM F17 BUNDLE
8th Edition
ISBN: 9781119463504
Author: Kimmel
Publisher: WILEY C
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The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.
WRIGHT COMPANYComparative Balance SheetsDecember 31, 2016 and 2015($ in 000s)
2016
2015
Assets
Cash
$
125
$
110
Accounts receivable
151
155
Short-term investment
56
20
Inventory
155
150
Land
114
140
Buildings and equipment
740
560
Less: Accumulated depreciation
(211)
(155)
$
1,130
$
980
Liabilities
Accounts payable
$
46
$
51
Salaries payable
4
7
Interest payable
5
4
Income tax payable
9
13
Notes payable
0
36
Bonds payable
332
260
Shareholders' Equity
Common stock
435
360
Paid-in capital—excess of par
200
180
Retained earnings
99…
The comparative balance sheet of Pelican Joe Industries Inc. for December 31, 2016 and 2015, is as follows:
The following additional information is taken from the records:1. Land was sold for $125.2. Equipment was acquired for cash.3. There were no disposals of equipment during the year.4. The common stock was issued for cash.5. There was a $325 credit to Retained Earnings for net income.6. There was an $100 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.b. Was Pelican Joe Industries Inc. net cash flow from operations more or less than net income? What is the source of this difference?
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Part 1: Financial StatementsA. Prepare the income statement for 2016 and 2017. Include statement of retained earnings for 2017. The company paid $11,000 dividend in 2017.B. Prepare the balance sheet for 2016 and 2017C. Prepare Common-Size financial statements of income statement and balance sheet.D. Prepare Statement of Cash Flows.
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