50.1K
Verified Solution
Link Copied!
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:
| | Dec. 31, 20Y3 | Dec. 31, 20Y2 |
| 2 | Assets | | |
| 3 | Cash | $155,000.00 | $150,000.00 |
| 4 | Accounts receivable (net) | 450,000.00 | 400,000.00 |
| 5 | Inventories | 770,000.00 | 750,000.00 |
| 6 | Investments | 0.00 | 100,000.00 |
| 7 | Land | 500,000.00 | 0.00 |
| 8 | Equipment | 1,400,000.00 | 1,200,000.00 |
| 9 | Accumulated depreciation-equipment | (600,000.00) | (500,000.00) |
| 10 | Total assets | $2,675,000.00 | $2,100,000.00 |
| 11 | Liabilities and Stockholders Equity | | |
| 12 | Accounts payable (merchandise creditors) | $340,000.00 | $300,000.00 |
| 13 | Accrued expenses payable (operating expenses) | 45,000.00 | 50,000.00 |
| 14 | Dividends payable | 30,000.00 | 25,000.00 |
| 15 | Common stock, $4 par | 700,000.00 | 600,000.00 |
| 16 | Paid-in capital in excess of parcommon stock | 200,000.00 | 175,000.00 |
| 17 | Retained earnings | 1,360,000.00 | 950,000.00 |
| 18 | Total liabilities and stockholders equity | $2,675,000.00 | $2,100,000.00 |
The income statement for the year ended December 31, 20Y3, is as follows:
| 1 | Sales | | $3,000,000.00 |
| 2 | Cost of goods sold | | (1,400,000.00) |
| 3 | Gross profit | | $1,600,000.00 |
| 4 | Operating expenses: | | |
| 5 | Depreciation expense | $100,000.00 | |
| 6 | Other operating expenses | 950,000.00 | |
| 7 | Total operating expenses | | (1,050,000.00) |
| 8 | Operating income | | $550,000.00 |
| 9 | Other income: | | |
| 10 | Gain on sale of investments | | 75,000.00 |
| 11 | Income before income tax | | $625,000.00 |
| 12 | Income tax expense | | (125,000.00) |
| 13 | Net income | | $500,000.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
| | a. The investments were sold for $175,000 cash. |
| | b. Equipment and land were acquired for cash. |
| | c. There were no disposals of equipment during the year. |
| | d. The common stock was issued for cash. |
| | e. There was a $90,000 debit to Retained Earnings for cash dividends declared. |
Labels
| Cash paid for dividends | |
| Cash paid for purchase of equipment | |
| Cash paid for purchase of land | |
| Cash paid for purchase of treasury stock | |
| Cash payments for income taxes | |
| Cash payments for merchandise | |
| Cash payments for operating expenses | |
| Cash received from customers | |
| Cash received from sale of common stock | |
| Cash received from sale of investments | |
| December 31, 20Y3 | |
| Depreciation | |
| For the Year Ended December 31, 20Y3 | |
| Gain on sale of investments | |
| Issuance of common stock for acquisition of land | |
| Issuance of common stock for purchase of equipment | |
| Loss on sale of investments | |
| Net cash flow from financing activities | |
| Net cash flow from investing activities | |
| Net cash flow from operating activities | |
| Net cash flow used for financing activities | |
| Net cash flow used for investing activities | |
| Net cash flow used for operating activities | |
| Net decrease in cash | |
| Net increase in cash | |
Prepare a statement of cash flows
| Cash flows from (used for) operating activities: | | |
| 2 | | | |
| 3 | | | |
| 4 | | | |
| 5 | | | |
| 6 | | | |
| 7 | | | |
| 8 | Cash flows from (used for) investing activities: | | |
| 9 | | | |
| 10 | | | |
| 11 | | | |
| 12 | | | |
| 13 | | | |
| 14 | Cash flows from (used for) financing activities: | | |
| 15 | | | |
| 16 | | | |
| 17 | | | |
| 18 | | | |
| 19 | Cash balance, January 1, 20Y3 | | |
| 20 | Cash balance, December 31, 20Y3 | | |
Answer & Explanation
Solved by verified expert
