Problem: The balance sheets for Byron manufacturing at December 31, 2012 and 2013 are shown:
|
Assets
|
2013
|
2012
|
|
Current Assets:
|
|
|
|
Cash
|
5,340
|
9,030
|
|
Amount receivable
|
10,620
|
9,070
|
|
Inventory
|
19,780
|
18,650
|
|
Total current assets
|
35,740
|
36,750
|
|
Property, plant, and equipment
|
|
|
|
Building
|
492,000
|
492,000
|
|
Equipment
|
280,000
|
270,400
|
|
|
772,000
|
762,400
|
|
|
|
|
|
Accumulated depreciation
|
(147,150)
|
(119,000)
|
|
Net property, plant, and equipment
|
624,850
|
643,400
|
|
Total assets
|
660,590
|
680,150
|
|
Liabilities and Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Amount payable
|
$5,120
|
36,260
|
|
Salaries payable
|
9,630
|
11,620
|
|
Income taxes payable
|
1,210
|
9,980
|
|
Total current liabilities
|
65,960
|
57,860
|
|
Long term liabilities:
|
|
|
|
Bonds payable
|
353,000
|
396,000
|
|
Equity:
|
|
|
|
Common stock
|
181,000
|
147,000
|
|
Retained earnings
|
60,630
|
79,290
|
|
Total equity
|
241,630
|
226,290
|
|
Total liabilities and equity
|
660,590
|
680,150
|
Additional information needed to prepare the Statement of Cash Flows:
1. Net income was $2,560
2. Byron paid $21,220 in cash dividends
3. Byron issued $51,67 in bonds payable for cash
4. Byron retired $94,670 in bonds payable for cash
5. No fixed assets were sold or disposed of during the period
Attachment:- Screen Shot 2015-10-16 at 9.34.31 PM.png
Attachment:- Screen Shot 2015-10-16 at 9.34.35 PM.png