Assume that in January 2010, an Oatmeal House restaurant purchased a building, paying $56,000 cash and signing a $107,000 note payable. The restaurant paid another $61,000 to remodel the building. Furniture and fixtures cost $53,000, and dishes and supplies-a current asset-were obtained for $9,200.
Oatmeal House is depreciating the building over 20 years by the straight-line method, with estimated residual value of $55,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated by the double-declining-balance method, with zero residual value. At the end of the first year, the restaurant still has dishes and supplies worth $1,700.
Show what the restaurant will report for supplies, plant assets, and cash flows at the end of the first year on its
* Income statement
* Balance sheet
* Statement of cash flows (investing only)