Complete balance sheet and prepare a statement of changes in retained earnings. Following is a statement of
Question:
HARTFORD, INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,000
Add (deduct) items not affecting cash:
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000
Decrease in accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,000
Increase in inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,000)
Increase in notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Decrease in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,000)
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . $ 228,000
Cash Flows from Investing Activities:
Purchase of equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(150,000)
Purchase of buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (144,000)
Net cash used by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . $(294,000)
Cash Flows from Financing Activities:
Proceeds from short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000
Cash used for retirement of long-term debt . . . . . . . . . . . . . . . . . . . . . (75,000)
Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . 30,000
Payment of cash dividends on common stock . . . . . . . . . . . . . . . . . . . . (9,000)
Net cash used by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . $ (39,000)
Net decrease in cash for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(105,000)
Required:
a. Complete the December 31, 2014 and 2013, balance sheets.
b. Prepare a statement of changes in retained earnings for the year ended December 31,2014.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
Question Posted: