Section II

$40$ Points

The balance sheets for Bally Inc. presents the following information. Additional information concerning transactions and events during $2023$ are presented below:

Bally Inc.

Balance Sheet

$($$ in thous$)$

December $31$

$20232022$

Cash $$12,700$ $$10,200$

Accounts Receivable $53,40020,300$

Inventory $25,00029,000$

Short Term Investments $$ Equity Securities $($Net$)14,00013,000$

Long Term Investments $-$ Common Stock $460,000315,000$

Property, Plant & Equipment $266,500150,000$

Accumulated Depreciation $(35,600)(25,000)$

Total Assets $$796,000$ $$512,500$

Accounts Payable $$16,000$ $$26,500$

Other Accrued Liabilities $28,00017,000$

Dividends Payable $35,000-0-$

Bonds Payable $150,000100,000$

Common Stock $100,00050,000$

Additional Paid$-$Capital $$ Common Stock $200,000100,000$

Retained Earnings $367,000219,000$

Treasury Stock $(100,000)-0-$

Total Liabilities and Stockholders$$ Equity $$796,000$ $$512,500$

Additional data for $2023$:

$($$ in thous$)$

$1.$ Net Income for the year, $$250,000$

$2.$ Plant Assets that cost $$15,000$ were sold for $$5,000.$ The gain of $$2,000$ on the sale was reported in net income.

$3.$ Dividends declared were $$102,000.$

$4.$ During the year common stock was issued at an amount above par.

$5.$ Recorded an adjusting entry at year end for a $$1,000$ unrealized gain on equity securities$.($Note: the account Short Term Investments $$ Equity Securities is a net amount with the Fair Value Adjustment account$)$

$6.$ Bally uses the Equity Method of Accounting for Long Term Investments in Common Stock. During $2023,$ Bally reported$/$recognized $$10,000$ of equity income.

Instructions: Prepare a Statement of Cash Flows $($use the indirect method$)$ for $2023$ for Bally Inc.

BUS $203-$ Test IV $-5-$

Statement of Cash Flows $$ Account Analysis Worksheet

Bally Inc.

Trial Balance

$($$ in thous.$)$

Assets $20232022$ Change

Cash $ $12,700$ $ $10,200$ $ $2,500$

Accounts Receivable $53,40020,30033,100$

Inventory $25,00029,000(4,000)$

ST Investments $-$ Equity Securities $($net$)14,00013,0001,000$

Long Term Investments $-$ Common Stock $460,000315,000145,000$

Property, Plant & Equipment $266,500150,000116,500$

Accumulated Depreciation $(35,600)(25,000)(10,600)$

Total Assets $ $796,000$ $ $512,500$ $ $283,500$

Liabilities and Stockholders' Equity

Accounts Payable $ $16,000$ $ $26,500$ $ $(10,500)$

Other Accrued Liabilities $28,00017,00011,000$

Dividends Payable $35,000-35,000$

Bonds Payable $150,000100,00050,000$

Common Stock $100,00050,00050,000$

Additional Paid$-$in$-$Capital $200,000100,000100,000$

Retained Earnings $367,000219,000148,000$

Treasury Stock $(100,000)-(100,000)$

Total Liabilities and Equity $ $796,000$ $ $512,500$ $ $283,500$

BUS $203-$ Test IV $-6-$

Bally Inc.

Statement of Cash Flows

For the year ended December $31,2023$

$($$ in thous$)$

Net Income

Net Increase to cash

Cash Balance $12/31/2022$

Cash Balance $12/31/2023$