EARL GREY GOLF CORP 2014 and 2015 Statement of Financial Position Liabilities an

ID: 2336189 • Letter: E

Question

EARL GREY GOLF CORP 2014 and 2015 Statement of Financial Position Liabilities and Owners' Equity 2014 Assets 2014 2015 2015 Current assets Current liabilities Cash Accounts receivable Inventory $ 24,046 12,448 25,392 $ 24,255 15,235 27,155 $ 23,184 12,000 11,571 $ 27,420 10,800 15,553 s payable Notes payable Other Total $ 61,886 $ 66,645 Total 46,755 S 53,773 $ 80,000 Long-term debt Owners' equity S 95,000 Common stock and paid-in surplus Retained earnings $40,000 219,826 $ 40,000 243,606 Fixed assets Net plant and equipment 324,695 $ 365,734 Total $ 259,826 $ 283,606 Total assets $ 386,581 $ 432,379 Total liabilities and owners' equity $ 386,581 $ 432,379 EARL GREY GOLF CORP 2015 Statement of Comprehensive Income Sales Cost of goods sold Depreciation S366,996 253,122 32,220 Earnings before interest and taxes Interest paid 81,654 14,300 Taxable income Taxes (35%) $ 67,354 23,574 Net income S 43,780 Dividends Additions to retained earnin $20,000 23,780

Explanation / Answer

Answer

For Statement of Cash flows to match, the total of Cash at the beginning and Increase (or Decrease) in Cash should equal to cash balance at the end. This is true as regard to the solution provided by me.

>Increase in accounts payable amount is wrongly calculated.
>Decrease in Notes Payable to shown under Financing activities.

Cash, beginning of the Year (A)

$ 24,046.00

Operating Activities:

Net Income

$ 43,780.00

Add: Depreciation

$ 32,220.00

Add: Increases in Other Current Liabilities

$ 3,982.00

Add: Increase in accounts payable

$ 4,236.00

Less: Increase in Inventory

$ (1,763.00)

Less: Increase in accounts receivables

$ (2,787.00)

Net Cash from Operating activities (B)

$ 79,668.00

Investing Activities:

Fixed Asset Acquisition

$ (73,259.00)

Net Cash from Investment activities (C )

$ (73,259.00)

Financing activities:

Increase in Long Term Debts

$ 15,000.00

Dividends paid

$ (20,000.00)

Repayment of Notes payable - decrease in Notes payable

$ (1,200.00)

Net Cash from Financing activities (D)

$ (6,200.00)

Net Increase in Cash (E = B+C+D)

$ 209.00

Cash end of Year (F = A + E)

$ 24,255.00