The balance sheets of Barrier Corporation as of December 31, Year 2, and Year 1, and its statement of income and retained earnings for the year ended December 31, Year 2, follow
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BARRIER CORPORATION
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Balance Sheets
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December 31, Year 2 and Year 1
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Year 2
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Year 1
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Increase (decrease)
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Assets
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Cash
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$ 275,000
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$ 180,000
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$ 95,000
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Accounts receivable
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295,000
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305,000
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(10,000)
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Inventories
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549,000
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431,000
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118,000
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Investment in Ort Inc., at equity
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73,000
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60,000
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13,000
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Land
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350,000
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200,000
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150,000
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Plant and equipment
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624,000
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606,000
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18,000
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Accumulated depreciation
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(139,000)
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(107,000)
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(32,000)
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Goodwill
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16,000
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20,000
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(4,000)
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Total assets
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$2,043000
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$1,695,000
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$348,000
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Liabilities and Stockholders' Equity
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Accounts payable
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$ 604,000
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$ 563,000
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41000
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Accrued expenses
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150,000
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-
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150000
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Bonds payable
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160,000
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210,000
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(50000)
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Deferred income taxes
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41,000
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30,000
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11000
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Common stock, par $10
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430,000
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400,000
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30000
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Additional paid-in capital
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226,000
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175,000
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51000
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Retained earnings
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432,000
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334,000
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98000
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Treasury stock, at cost
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-
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(17,000)
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17000
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Total liabilities and equity
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$2,043,000
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$1,695,000
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$348000
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BARRIER CORPORATION
Statement of Income and Retained Earnings
For Year Ended December 31, Year 2
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Net sales
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$1,937,000
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Undistributed income from Ort Inc.
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13,000
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Total net revenue
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1,950,000
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Cost of sales
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(1,150,000)
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Gross income
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800,000
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Depreciation expense
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$32,000
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Amortization of goodwill
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4,000
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Other expenses (including income taxes
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623,000
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(659,000)
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Net income
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$ 141,000
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Retained earnings, January 1, Year 2
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334,000
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475,000
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Cash dividends paid
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(43,000)
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Retained earnings, December 31, Year 2
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$ 432,000
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Additional information:
- Capital stock is issued to provide additional cash.
- All accounts receivable and payable relate to operations.
- Accounts payable relate only to items included in cost of sales.
- There are no noncash transactions.
Required:
Determine the following amounts:
a. Cash collected from sales during Year 2.
b. Cash payments on accounts payable during Year 2.
c. Cash receipts during Year 2 not provided by operations.
d. Cash payments for noncurrent assets purchased during Year 2.