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Balance Sheets As of December 31 Year 2 Year 1 $182,200 117,480 212,000 295,000 739,000 (353,000) 91,000 $1,283,600 $137,200 97,000 195,488 231,000 557,000 (273,000) 136,000 $1,880,600 Assets Cash Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation Land Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-long-term Bonds payable Total liabilities Stockholders' equity Comon stock, no par Preferred stock, $50 par Poid-in capital in excess of par-Preferred stock Total paid in capitol Retained earnings Less: Treasury stock Total stockholders' equity Total liabilities and stockholders' equity $41,400 262,000 227,000 530,400 $75,300 284,000 114,000 473,300 272,800 125,000 39,400 437,200 350,000 (34,000) 753,200 $1,283,600 227,000 114,000 30, 500 371,500 280,800 (45,000) 607, 300 $1,080, 600 $1,194,000 (871,880) 322,200 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreciation expense Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment Net Income $23,200 105,000 102,000 (230, 200) 92,000 (18,000) 29,000 14,000 $117,000 es Additional Information 1. Sold land that cost $45,000 for $50,000. 2. Sold equipment that cost $34,000 and had accumulated depreciation of $23,000 for $20,000 3. Purchased new equipment for $216,000. 4. Sold marketable securities that were classified as available for sale and that cost $51,000 for $80,000. 5. Purchased new marketable securities, classified as available for sale, for $115,000. 6. Paid $23,000 on the principal of the long-term note. 7. Paid off a $114,000 bond issue and issued new bonds for $229,000 8. Sold 100 shares of treasury stock at its cost. 7. Pald off a $114,000 bond issue and issued new bonds for $229,000 8. Sold 100 shares of treasury stock at its cost 9. Issued some new common stock 10. Issued some new $50 par preferred stock. 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends) Required Organize the class into three sections and divide each section into groups of three to five students Assign each section of groups an activity section of the statement of cash flows (operating activities, investing activities, or financing activities) Group Tosk Prepare your assigned portion of the statement of cash flows using the direct method. Have a representative of your section put your activity section of the statement of cash flows on the board As each section adds its information on the board the full statement of cash flows will be presented Class Discussion Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions o. What is the cost per share of the treasury stock sold? b. What was the price per share of the newly issued preferred stock? c. What was the book value of the equipment sold? Complete this question by entering your answers in the tabs below. Statement of Cash Flows Req AtoC Prepare a statement of cash flows using the direct method. (Cash outflows should be indicated with a minus sign.) BLYTHE INDUSTRIES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash Receipts from 0 Total cash inflows Cash payments for Total cash outflows Total cash outflows 0 0 Cash flows from investing activities 0 Cash flows from financing activities: 0 Cash flows from financing activities 0 0 Ending cash balance $ 0 Complete this question by entering your answers in the tabs below. Statement of Cash Flows Req AtoC a. What is the cost per share of the treasury stock sold? b. What was the price per share of the newly issued preferred stock? (Round final answer to the nearest whole number) c. What was the book value of the equipment sold? Cost of treasury stock sold per share Issue price of preferred stock per share Book value of equipment sold a b

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