Sweet Acacia Inc. Comparative Balance Sheets December 31 2025 2024 Assets Cash $96,960 $58,080 Accounts receivable...

Transcribed Image Text:

Sweet Acacia Inc. Comparative Balance Sheets December 31 2025 2024 Assets Cash $96,960 $58,080 Accounts receivable 105,360 45,600 Inventory 135,000 123,420 Prepaid expenses 34,080 31,200 Long-term investments 165,600 130,800 Plant assets 342,000 291,000 Accumulated depreciation (60,000) (62.400) Total $819,000 $617,700 Liabilities and Stockholders' Equity Accumulated depreciation (60,000) (62,400) Total $819,000 $617,700 Liabilities and Stockholders' Equity Accounts payable $122,400 $ 80,760 Accrued expenses payable 19,800 25,200 Bonds payable 132,000 175,200 Common stock 264,000 210,000 Retained earnings 280,800 126,540 Total $819,000 $617,700 Sweet Acacia Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue $466,152 Less: Cost of goods sold $162,552 Operating expenses, excluding depreciation 14,892 Depreciation expense 55,800 Income tax expense 32,736 Interest expense 5,676 Loss on disposal of plant assets 9,000 280,656 Net income $ 185,496 Additional information Additional information: 1. New plant assets costing $120,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $69,000 and accumulated depreciation of $58,200 were sold for $1,800 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $31,236 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign eg.-15,000 or in Sweet Acacia Inc. Comparative Balance Sheets December 31 2025 2024 Assets Cash $96,960 $58,080 Accounts receivable 105,360 45,600 Inventory 135,000 123,420 Prepaid expenses 34,080 31,200 Long-term investments 165,600 130,800 Plant assets 342,000 291,000 Accumulated depreciation (60,000) (62.400) Total $819,000 $617,700 Liabilities and Stockholders' Equity Accumulated depreciation (60,000) (62,400) Total $819,000 $617,700 Liabilities and Stockholders' Equity Accounts payable $122,400 $ 80,760 Accrued expenses payable 19,800 25,200 Bonds payable 132,000 175,200 Common stock 264,000 210,000 Retained earnings 280,800 126,540 Total $819,000 $617,700 Sweet Acacia Inc. Income Statement Data For the Year Ended December 31, 2025 Sales revenue $466,152 Less: Cost of goods sold $162,552 Operating expenses, excluding depreciation 14,892 Depreciation expense 55,800 Income tax expense 32,736 Interest expense 5,676 Loss on disposal of plant assets 9,000 280,656 Net income $ 185,496 Additional information Additional information: 1. New plant assets costing $120,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $69,000 and accumulated depreciation of $58,200 were sold for $1,800 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $31,236 was declared and paid during the year. 5. Common stock was issued at par for cash. 6. There were no significant noncash transactions. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign eg.-15,000 or in