The comparative balance sheets for 2016 and 2015 are given below for Surmise Company. Net income for
Question:
The comparative balance sheets for 2016 and 2015 are given below for Surmise Company. Net income for 2016 was $88 million.
SURMISE COMPANY | ||
Comparative Balance Sheets | ||
December 31, 2016 and 2015 | ||
($ in millions) | ||
2016 | 2015 | |
Assets | ||
Cash | $ 84 | $ 33 |
Accounts receivable | $94 | $115 |
Less: Allowance for uncollectible accounts | $(30) | $(6) |
Prepaid expenses | $25 | $20 |
Inventory | $130 | $104 |
Long-term investment | $159 | $115 |
Land | $108 | $108 |
Buildings and equipment | $424 | $290 |
Less: Accumulated depreciation | $(149) | $(116) |
Patent | $29 | $31 |
$ 874 | $ 694 | |
Liabilities | ||
Accounts payable | $27 | $50 |
Accrued liabilities | $(4) | $24 |
Notes payable | $56 | $0 |
Lease liability | $134 | $0 |
Bonds payable | $69 | $145 |
Shareholders' Equity | ||
Common stock | $73 | $50 |
Paid-in capital-excess of par | $269 | $205 |
Retained earnings | $250 | $220 |
$874 | $694 | |
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2016.
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Intermediate Accounting
ISBN: 978-1259548185
8th edition
Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
