60.1K

Verified Solution

Link Copied!

	Smith Manufacturing, Inc.				Smith Manufacturing, Inc.
	Balance Sheet				Income Statement
		Year Ended			For Year Ended 2012
Assets:		2012	2011		Revenues		649,000
Cash		5,000	3,000		Cost of Goods Sold		462,000
Accounts Receivable		45,000	40,000		Gross Profit		187,000
Inventory		64,000	55,000
Prepaid Insurance		4,000	7,000		Operating Expenses:
Equipment		125,000	130,000		Wage Expense		121,000
Accumulated Depreciation		(65,000)	(42,000)		Depreciation Expense		43,000
Land		100,000	100,000		Office Expense		30,000
Total Assets		278,000	293,000		Insurance Expense		10,000
					Total Operating Exp		204,000
Liabilities:					Operating Income (Loss)		(17,000)
Accounts Payable		31,000	43,000
Interest Payable		10,000	11,000		Gain on Equip Sales		5,000
Income Tax Payable		-	12,000		Income Before Interest & Taxes		(12,000)
Bonds Payable		43,000	35,000
Premium on Bonds		2,000	-		Interest Expense		2,000
Total Liabilities		86,000	101,000		Income Tax Expense (Benefit)		(5,000)
Owners' Equity:					Net Income (Loss)		(9,000)
Common Stock		65,000	52,000
Additional Paid In Capital		115,000	110,000
Retained Earnings		12,000	30,000
Total Owners' Equity		192,000	192,000
Total Liab & Owners' Equity		278,000	293,000
Notes:	During 2012, Smith Manufacturing sold equipment with an original cost of $40,000.
Required:	Prepare the 2012 Statement of Cash for Smith Manufacturing.
	The Statement may be prepared using the Direct or Indirect Method.

Answer & Explanation Solved by verified expert

See Answer