8 9 Ace Corporation 10 Balance Sheets 11 Ace Corporation Income Statement For the Year Ended...
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8 9 Ace Corporation 10 Balance Sheets 11 Ace Corporation Income Statement For the Year Ended 12/31/16 12 13 Cash 14 Accounts receivable 12/31/2016 12/31/2015 755,704 442,000 Sales revenue 375,000 45,000 Cost of goods sold 15 Merchandise inventory 665,000 485,000 Gross profit 4,280,000 2,670,000 1,610,000 16 Office supplies 24,000 22,000 17 Property, plant, and equipment, net 2,270,000 1,215,000 Operating expenses: 18 Patent 550,000 600,000 19 Totals 4,639,704 2,809,000 Rent expense 20 Salaries expense Supplies expense 270,000 5,000 69,000 21 Accounts payable 22 Rent payable 52,000 5,000 92,000 Patent amortization 50,000 8,000 Depreciation 210,000 23 Income taxes payable 100,000 27,000 Total operating expenses 604,000 24 Bonds and loans payable 1,982,465 250,000 25 Common stock ($1000 par per share) 400,000 400,000 Operating income 1,006,000 26 Additional paid-in capital 900,000 900,000 Interest Revenure (Expense) (193,761) 27 Retained earnings 1,310,239 1,132,000 Gains (losses) on sales of equipment (30,000) 28 Treasury stock 29 Totals 30 (110,000) 0 Other income (loss), net (223,761) 4,639,704 2,809,000 Income before income taxes 782,239 31 32 Provision for income taxes Net Income 200,000 582,239 3 Requirement: Complete the 2016 Statement of Cash Flows using the direct method for 45 169 7 8 9 10 11 12 Operating Cash Flows. Don't forget any required disclosures! Use the comparative balance sheets and 2016 income statement provided along with additional information provided in Column E of this worksheet. You must include the appropriate descriptive language in Column A for the items you include in each section of the cash flows statement. Ace Corporation Statement of Cash Flows For the Year Ended 12/31/16 ADDITIONAL INFORMATION: 1) Ace paid $65,000 to purchase equipment. 2) Ace sold equipment with an original cost of $440,000 and accumulated depreciation of $290,000 for $120,000 cash. 3) Ace declared and paid cash dividends. You must determine the dollar amount. 4) Ace purchased treasury stock for $110,000. 8 9 Ace Corporation 10 Balance Sheets 11 Ace Corporation Income Statement For the Year Ended 12/31/16 12 13 Cash 14 Accounts receivable 12/31/2016 12/31/2015 755,704 442,000 Sales revenue 375,000 45,000 Cost of goods sold 15 Merchandise inventory 665,000 485,000 Gross profit 4,280,000 2,670,000 1,610,000 16 Office supplies 24,000 22,000 17 Property, plant, and equipment, net 2,270,000 1,215,000 Operating expenses: 18 Patent 550,000 600,000 19 Totals 4,639,704 2,809,000 Rent expense 20 Salaries expense Supplies expense 270,000 5,000 69,000 21 Accounts payable 22 Rent payable 52,000 5,000 92,000 Patent amortization 50,000 8,000 Depreciation 210,000 23 Income taxes payable 100,000 27,000 Total operating expenses 604,000 24 Bonds and loans payable 1,982,465 250,000 25 Common stock ($1000 par per share) 400,000 400,000 Operating income 1,006,000 26 Additional paid-in capital 900,000 900,000 Interest Revenure (Expense) (193,761) 27 Retained earnings 1,310,239 1,132,000 Gains (losses) on sales of equipment (30,000) 28 Treasury stock 29 Totals 30 (110,000) 0 Other income (loss), net (223,761) 4,639,704 2,809,000 Income before income taxes 782,239 31 32 Provision for income taxes Net Income 200,000 582,239 3 Requirement: Complete the 2016 Statement of Cash Flows using the direct method for 45 169 7 8 9 10 11 12 Operating Cash Flows. Don't forget any required disclosures! Use the comparative balance sheets and 2016 income statement provided along with additional information provided in Column E of this worksheet. You must include the appropriate descriptive language in Column A for the items you include in each section of the cash flows statement. Ace Corporation Statement of Cash Flows For the Year Ended 12/31/16 ADDITIONAL INFORMATION: 1) Ace paid $65,000 to purchase equipment. 2) Ace sold equipment with an original cost of $440,000 and accumulated depreciation of $290,000 for $120,000 cash. 3) Ace declared and paid cash dividends. You must determine the dollar amount. 4) Ace purchased treasury stock for $110,000.
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Based on the provided information here is a summary of the Ace Corporations balance sheet and income statement Balance Sheet Accounts receivable 755704 Merchandise inventory 375000 Office supplies 665... View the full answer
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