Sila Company
Balance Sheet
For Year Ended December 31, 2014
Assets: Year2 Year 1
Current Assets
Cash 60,000 60,000
Investment 30,000 55,000
Accounts Receivable 152000 136000
Less: Allowance for uncollectible acc. 6000 146,000 3000 133,000
Inventory 118,000 84,000
Total current assets 354,000 343,500
Property, Plant, Equipment
Land 50,000 15,000
Buildings 160,000 160,000
Less: Acc. Depreciation 40,000 120,000 32,000 128,000
Equipment 60,000 41,500
Less: acc. Depreciation 24,000 36,000 18,500 23,000
Total property, plant, & Equipment 206,000 166,000
Total assets 560,000 509,500
Liabilities & Stockholder's Equity
Liabilities
Account Payable 102,000 95,000
Income taxes payable 13,000 8,000
Long term notes payable 65,000 80,000
Total liabilities 180,000 183,000
Stockholder's Equity
Common stock 295,000 236,500
Retained Earnings 85,000 90,000
Total stockholder's Equity 380,000 326,500
Total liabilities & stockholder's equity 560,000 509,500
Additional for year 2:
- None of the accounts receivable were written off.
- CFO sold investments in year 2 worth
- Asset acquisitions manager sold equipment she had purchased for: 20,000
- When the equipment was sold, it had already been depreciated by: 40%
- Board of directors declared and paid dividends in year 2.
- Common stock was issued in exchange for a plot of land the company planned to develop in the future.
Operating Expenses:
- Uncollectible account expense:
- Depreciation Expense: Buildings:
- Depreciation Expense: equipment
Sila Company
Income Statement
For the Year Ended Dec. 31,2014
Sales: 750,000
Less: COGS: 480,000
Gross profit: 270,000
Operating Expenses: 145,000
Income from operations: 125,000
Other revenue & Expenses:
Gain on sale of investments: 7,000
Loss on sale of equipment: 4,000 3,000
Income before taxes: 128,000
Income tax expense: 52,000
Net income: 76,000
Use above information to compute Statement of Cash Flows: direct and indirect method on Excel spreadsheet.