Test Your Knowledge Comparative Balance Sheet For the Year Ended 2013 and 2012
| |
2013 |
|
2012 |
| Assets |
|
|
|
| Cash |
$156,500 |
|
$115,000 |
| Marketable Securities |
34,000 |
|
22,000 |
| Accounts Receivable |
8,000 |
|
10,000 |
| Inventory |
27,000 |
|
15,000 |
| Prepaid expenses |
1,500 |
|
2,000 |
| Plant assets |
80,000 |
|
100,000 |
| Accumul deprec |
(29,000) |
|
(30,000) |
| Total Assets |
$278,000 |
|
$234,000 |
| Liabilities & Owner's Equity |
|
|
|
| Accounts payable |
$7,000 |
|
$4,000 |
| Note payable short-term |
26,000 |
|
12,000 |
| Interest payable |
4,000 |
|
3,000 |
| Income tax payable |
9,000 |
|
6,000 |
| Bonds payable |
42,000 |
|
50,000 |
| Common stock |
145,000 |
|
135,000 |
| Retained earnings |
45,000 |
|
24,000 |
| Total liabilities & OE |
$278,000 |
|
$234,000 |
1. Sold plant assets for $ 60,000. Their book was $ 53,000.
2. Marketable securities sold for $ 15,000
3. Purchased plant assets by paying 22,000 down and financing the remainder using a short-term note.
| Sales |
|
|
$100,000 |
| Cost of goods sold |
|
|
40,000 |
| Gross Profit |
|
|
$60,000 |
| Operating expenses |
|
|
|
| Depreciation exp |
$8,000 |
|
|
| General exp |
10,000 |
|
$18,000 |
| Operating income |
|
|
42,000 |
| Other revenue and expenses |
|
|
|
| Gain on sale of plant assets |
$7,000 |
|
|
| Loss on sale of marketable securities |
(2,000) |
|
|
| Interest exp |
(3,000) |
|
2,000 |
| Income from continuing operations |
|
|
44,000 |
| Income tax |
|
|
17,600 |
| Net income |
|
|
$26,400 |
Prepare cash flow analysis using indirect method.Prepare cash flow analysis for operations