90.2K

Verified Solution

Link Copied!

9. Taxes payable decreased by P10.2 Balance sheet information for a resort hotel reflects the changes to cur- rent accounts that occurred cember 31, 0008. Cash account balance at December over the annual operating period ended De- 31, 0007, was $12.020 and the ending cash balance at December 31,0008, is $30,840. Current Asset Accounts Amount $18,820 680 1,500 1,200 800 Change Cash Increased Increased Increased Increased Decreased Credit card receivables Accounts receivable Inventories Prepaid expenses Current Liability Accounts Change Amount Accounts payable Accrued payroll payable Taxes payable Increased Decreased $ 2,100 2,400 900 Additional information applying to the current year ending December 31, 0008: a. Net income for Year 0008 was $112,400. b. Depreciation expense for Year 2008 was $120,000. c. Furnishings with a book value of $5,400 were sold for $8,600. d. Equipment with a book value of $2,800 was sold for $2,000. e. New furnishings were purchased for $16,800. f. New equipment was purchased for $24,200. g. A total of $54,800 was paid to reduce long-term debt. h. Cash dividends of $122,400 were declared and paid. the indirect method. H03 You have the following comparative balance sheets for a restaurant for the years ending December 31, 0007, and December 31, 0008. Calcu- late the change in working capital and prepare the restaurant's statement of sources and uses of working capital for the year ending December 31. 0008

Answer & Explanation Solved by verified expert

See Answer