Question: Presented below is a partially completed balance sheet for Shannon Corporation at December 31, 2019 together with a comparative balance sheet at December 31, 2018.
Presented below is a partially completed balance sheet for Shannon Corporation at December 31, 2019 together with a comparative balance sheet at December 31, 2018. Additional information is as follows:
- Net income for the year ended December 31, 2019 was $106,000.
- Dividends paid during the year ended December 31, 2019 were $42,000.
- Working capital (current assets minus current liabilities) at December 31, 2019 was $13,000.
- Long term debt increased by $1,000.
- Depreciation for 2019 was $20,000.
- The Company did not dispose of any property during 2019.
Shannon Corporation
Balance Sheets
December 31, 2019 and 2018
2019 2018
Assets
Current assets:
Cash $ 29,000 $ 33,000
Accounts receivable ? 112,000
Inventory 167,000 184,000
Total current assets ? 329,000
Net property & equipment ? 320,000
Total assets $ ? $649,000
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable ? $207,000
Note payable 135,000 119,000
Total current liabilities 309,000 326,000
Long-term debt ? 86,000
Total liabilities ? 412,000
Stockholders equity:
Common stock 80,000 70,000
Retained earnings ? 167,000
Total stockholders equity ? 237,000
Total liabilities and equity $ ? $649,000
Required
- Complete the December 31, 2019 balance sheet.
- Prepare the statement of cash flow for the year ended December 31, 2019 using the indirect method.
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