Sally's Corporation's balance sheet at the end of 2015 included the following items Current assets $283,000...
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Sally's Corporation's balance sheet at the end of 2015 included the following items Current assets $283,000 Current liabilities $181,000 Land $37,000 Bonds payable $121,000 Building $145,000 Common stock $217,000 Equipment $109,000 Retained earnings $53,800 Accumulated Depreciation, Building -$36,000 Total $572,800 Accumulated Depreciation, Equipment -$13,200 Patents $48,000 Total $572,800 The following information is available for 2016 1. Treasury stock was purchased at a cost of $13,200 2. Cash dividends of $36,000 were declared and paid 3. A long-term investment in stock were purchased for $19,200 4. Current assets other than cash increased by $34,800. Current liabilities increased by $15,600 5. Depreciation expense was $4,800 on the building and $10,800 on equipment 6. Net income was $66,000 7. Bonds payable of $60,000 were issued 8. An addition to the building was completed at a cost of $32,400 9. Patent amortization was $3,000 10. Equipment (cost $24,000 and accumulated depreciation was $9,600) was sold for $12,000 Instructions (a) Prepare a statement of cash flows for 2016 using the indirect method (b) Prepare a balance sheet for December 31, 2016 Sally's Corporation's balance sheet at the end of 2015 included the following items Current assets $283,000 Current liabilities $181,000 Land $37,000 Bonds payable $121,000 Building $145,000 Common stock $217,000 Equipment $109,000 Retained earnings $53,800 Accumulated Depreciation, Building -$36,000 Total $572,800 Accumulated Depreciation, Equipment -$13,200 Patents $48,000 Total $572,800 The following information is available for 2016 1. Treasury stock was purchased at a cost of $13,200 2. Cash dividends of $36,000 were declared and paid 3. A long-term investment in stock were purchased for $19,200 4. Current assets other than cash increased by $34,800. Current liabilities increased by $15,600 5. Depreciation expense was $4,800 on the building and $10,800 on equipment 6. Net income was $66,000 7. Bonds payable of $60,000 were issued 8. An addition to the building was completed at a cost of $32,400 9. Patent amortization was $3,000 10. Equipment (cost $24,000 and accumulated depreciation was $9,600) was sold for $12,000 Instructions (a) Prepare a statement of cash flows for 2016 using the indirect method (b) Prepare a balance sheet for December 31, 2016
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Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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