Pacific Corporation's comparative balance sheet as of December 31, 2016 and 2015, and 2016 condensed income statement appear below.

INSTRUCTIONS
Prepare a statement of cash flows for 2016. Additional information for the year follows:
a. Depreciation totaling $9,000 is included in expenses.
b. Sold land for $35,000 in cash; the land, which is included in plant and equipment, had a cost of $35,000.
c. Acquired a building with a fair market value of $100,000 by issuing common stock.
d. Purchased equipment for $25,000 in cash.
e. Paid dividends of $50,000.
Analyze:
If the company had purchased equipment on credit instead of using cash, what would the cash balance have been at year-end?

Transcribed Image Text:

Pacific Corporation Comparative Balance Sheet December 31, 2016 and 2015 Assets 2016 2015 Cash Accounts Receivable 6 50 6400 Prepaid Advertising Property, Plant, and Equipment 이익이-140101010 1000 9 00 0 03 8 542400 Totol Assets 4 240 00 Liabilities and Stockholders Equty Liabilities Accounts Payable Income Taxes Payable Notes Payable-2018 500 9 500 2 500 40000 Totol Liabilities 500 Stockholders Equity Common Stock ($1 Retained Earnings Total Stockholders Equity otal Liabilities and Stockholders Equity