I. (Working with an income statement and balance sheet) Prepare a balance sheet and income statement for Beblond, Inc. from the following information.
- Inventory $ 6,500
- Common stock 45,000
- Cash 16,550
- Operating expenses 1,350
- Short-term notes payable 600
- Interest expense 900
- Depreciation expense 500
- Sales 12,800
- Accounts receivable 9,600
- Accounts payable 4,800
- Long-term debt 55,000
- Cost of goods sold 5,750
- Buildings and equipment 122,000
- Accumulated depreciation 34,000
- Taxes 1,440
- General and administrative expenses 850
- Retained earnings ?
III. (Computing cash flows) Given the following information, prepare a statement of cash flows.
- Dividends S 25
- Increase in common stock 27
- Increase in accounts receivable 65
- Increase in inventories 5
- Operating income 215
- Increase in accounts payables 40
- Interest expense 50
- Depreciation expense 20
- Increase in bank debt 48
- Increase in accrued expenses 15
- Increase in gross fixed assets 55
- Income taxes 45
III. (Analyzing a statement of cash flows) Interpret the following information regarding Westlake Corporation's cash flows.
- Net income $ 680
- Depreciation expense 125
- Profits before depreciation 805
- Increase in accounts receivable (200)
- Increase in inventories (240)
- Increase in accounts payable 120
- Increase in accrued expenses 81
- Cash flow from operations $ 566
- Investment activity
- Change in fixed assets (1,064)
- Financing activity
- Increase in long-term debt $ 640
- Common stock dividends (120)
- Total financing activities $ 520
- Change in cash $ 22
- Beginning cash 500
- Ending cash $ 522