The following financial statements and information are available for Blythe Industries Inc.: Income Statement For the Year

Question:

The following financial statements and information are available for Blythe Industries Inc.:

Balance Sheets As of December 31 2017 2016 Assets $ 160,200 103,200 186,400 284,000 650,000 (310,000) 80,000 $120,600 85


Income Statement For the Year Ended December 31, 2017

Sales revenue .............................................................................................$1,050,000
Cost of goods sold .....................................................................................(766,500)
Gross profit .................................................................................................283,500
Operating expenses
Supplies expense ........................................................................................$20,400
Salaries expense .........................................................................................92,000
Depreciation expense ................................................................................90,000
Total operating expenses ..........................................................................(202,400)
Operating income .......................................................................................81,100
Nonoperating items
Interest expense ..........................................................................................(16,000)
Gain from the sale of marketable securities ...........................................30,000
Gain from the sale of land and equipment .............................................12,000
Net income ..................................................................................................$ 107,100


Additional Information
1. Sold land that cost $40,000 for $44,000.
2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000.
3. Purchased new equipment for $190,000.

4. Sold marketable securities that were classified as available-for-sale and that cost $40,000 for $70,000.
5. Purchased new marketable securities, classified as available-for-sale, for $104,000.
6. Paid $20,000 on the principal of the long-term note.
7. Paid off a $100,000 bond issue and issued new bonds for $200,000.
8. Sold 100 shares of treasury stock at its cost.
9. Issued some new common stock.
10. Issued some new $50 par preferred stock.
11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.)


Required
Organize the class into three sections and divide each section into groups of three to five students. Assign each section of groups an activity section of the statement of cash flows (operating activities, investing activities, or financing activities).
Group Task
Prepare your assigned portion of the statement of cash flows. Have a representative of your section put your activity section of the statement of cash flows on the board. As each section adds its information on the board, the full statement of cash flows will be presented.

Class Discussion
Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions.
a. What is the cost per share of the treasury stock?
b. What was the issue price per share of the preferred stock?
c. What was the book value of the equipment sold?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

Question Posted: