ASAP PLEASE

The comparative balance sheets and an income statement for Raceway Corporation follow.

	Year 2	Year 1
Balance Sheets
As of December 31
Assets
Cash	$61,262	$40,710
Accounts receivable	31,105	22,810
Inventory	158,965	174,860
Prepaid rent	2,475	4,950
Equipment	254,790	286,260
Accumulated depreciation	(146,540)	(237,770)
Land	192,860	82,160
Total assets	$554,917	$373,980
Liabilities
Accounts payable (inventory)	$63,368	71,880
Salaries payable	29,925	25,650
Stockholders? equity
Common stock, $50 par value	243,000	198,000
Retained earnings	218,624	78,450
Total liabilities and equity	$554,917	$373,980

Income Statement
For the Year Ended December 31, Year 2
Sales	$1,504,000
Cost of goods sold	(799,326)
Gross profit	704,674
Operating expenses
Depreciation expense	(21,840)
Rent expense	(28,030)
Salaries expense	(257,770)
Other operating expenses	(256,860)
Net income	$140,174

Other Information

Purchased land for $110,700.

Purchased new equipment for $103,000.

Sold old equipment that cost $134,470 with accumulated depreciation of $113,070 for $21,400 cash.

Issued common stock for $45,000.

Transcribed Image Text:

Cash flows from operating activities: Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from financing activities: Ending cash balance Cash flows from operating activities: Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from financing activities: Ending cash balance

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Land purchase costs 110700 Race... View the full answer