QS 16-9 Computing financing cash flows LO P3

The following selected information is from Princeton Companys comparative balance sheets.

At December 31	2017		2016
Common stock, $10 par value	$	115,000	$	112,000
Paid-in capital in excess of par		579,000		348,000
Retained earnings		325,500		299,500

The companys net income for the year ended December 31, 2017, was $54,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017.

Common Stock, $10 Par
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End. bal.
Paid-in Capital in Excess of Par
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End. bal.
Cash received

2. Complete the T-account to calculate the cash paid for dividends during 2017.

Retained Earnings
Beg. bal.
End. bal.

A comparative balance sheet and income statement is shown for Cruz, Inc.

CRUZ, INC. Comparative Balance Sheets December 31, 2017
		2017				2016
Assets
Cash	$	85,600			$	21,300
Accounts receivable, net		36,800				45,200
Inventory		77,100				84,900
Prepaid expenses		4,700				3,900
Total current assets		204,200				155,300
Furniture		94,700				110,500
Accum. depreciationFurniture		(14,700	)			(8,400	)
Total assets	$	284,200			$	257,400
Liabilities and Equity
Accounts payable	$	13,400			$	19,000
Wages payable		8,000				4,500
Income taxes payable		1,400				2,500
Total current liabilities		22,800				26,000
Notes payable (long-term)		28,900				66,400
Total liabilities		51,700				92,400
Equity
Common stock, $5 par value		204,000				162,300
Retained earnings		28,500				2,700
Total liabilities and equity	$	284,200			$	257,400

CRUZ, INC. Income Statement For Year Ended December 31, 2017
Sales				$	440,700
Cost of goods sold					283,700
Gross profit					157,000
Operating expenses
Depreciation expense	$	33,900
Other expenses		80,400			114,300
Income before taxes					42,700
Income taxes expense					15,500
Net income				$	27,200

QS 16-13 Computing financing cash outflows LO P3

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2017? 2. Assume that no additional notes payable are issued in 2017. What cash amount is paid to reduce the notes payable balance in 2017?

Retained Earnings
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End. bal.
Notes Payable
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End. bal.