Sherman Company reported the following financial statements for 2013 and 2014: Compute the following investing cash flows:
Question:
Compute the following investing cash flows:
a. Purchases of plant assets (all were for cash). There were no sales of plant assets.
b. Proceeds from the sale of investments. There were no purchases ofinvestments.
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...
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1 Sherman Company Income Statement For the Year Ended December 31, 2014 4 5 Sales revenues 6 Less: Cost of goods sold 7 Gross profit 8 Less operating expenses: 9 Salaries and wages expense 10 Insurance expense 11 Depreciation expense 12Other operating expenses 13 14 Operating income 15 Plus other income and less other expenses: 16 Interest expense 17 Other income and expenses 18 19 Income before income taxes 20 Less: Income tax expense 21 Net income 4750,000 2,880,000 1,870,000 320,000 12,000 77,000 120,000 Total operating expenses 529,000 1,341,000 6,100 0 Total other income and expenses 6.100 S 1,334 900 403,000 Sherman Company Comparative Balance Sheets December 31, 2014 and 2013 2 Assets 2014 2013 5 Current assets: 6 Cash 7 Accounts receivable 8 Inventory 9 Prepaid insurance 10 Total current assets 589,000 S 3,000 960,000 4,800 464,000 17,000 200,000 4,800 685,800 S 1,626,800 12 Property, plant, and equipment 13 Less: Accumulated depreciation 14 Investments 15 Total assets 16 17 18 Current liabilities: 19 Accounts payable 20 Wages payable 21 I interest payable 22 Income taxes payable 23 Other accrued expenses pay able 24 Total current liabilities 25 26 Long-term liabilities 27 Total liabilities 28 29 30 Common stock 31 Retained earnings 32 Total stockholders' equity S 1,230,000 1,180,000 (209,000) 62,000 S2612800 S1718800 286,000) 42,000 Liabilities 21,000 S 17,000 44,000 2,700 275,080 21,000 19,000 5,300 38,000 336,780 120,300 65,000 401,780 80,000 Stockholders' equity ls IS 721,000..$ 2.211,020 IS 2,612800 S1718800 778000 740,500 1,518,500! 34 Total liabilities and equity 35
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