The balance sheet and income statement for a company are provided below, along w

Question

The balance sheet and income statement for a company are provided below, along with selected additional financial information. Current Year Prior Year Balance Sheet Cash 79,250 73,840 Accounts Receivable 18,820 24,185 Merchandise Inventory 15,354 6,976 Property and equipment 285,735 175,000 Accumulated Depreciation (89,000) (72,630) Total Assets 310,159 207,371 Accounts Payable 8,500 18,200 Wages Payable 3,208 2,194 Notes payable, long-term 72,840 86,100 Contributed capital 84,255 65,980 Retained earnings 141,356 34,897 Total Liabilities and Stockholders

Explanation / Answer

Current Year Prior Year
Balance Sheet
Cash 79,250 73,840
Accounts Receivable 18,820 24,185
Merchandise Inventory 15,354 6,976
Property and equipment 285,735 175,000
Accumulated Depreciation (89,000) (72,630)
Total Assets 310,159 207,371
Accounts Payable 8,500 18,200
Wages Payable 3,208 2,194
Notes payable, long-term 72,840 86,100
Contributed capital 84,255 65,980
Retained earnings 141,356 34,897
Total Liabilities and Stockholders’ Equity 310,159 207,371

Income Statement Sales 284,955
Cost of goods sold 91,357
Wages 32,187
Depreciation expense 16,370
Other Expense 22,358
Net income 122,683

Additional data:
a) Purchased equipment for cash $100,735
b) Paid $13,260 on a long-term loan
c) Issued new shares of stock for $18,275 cash
d) Dividends of $16,224 were declared and paid.

Cash flows from operating activities:
Net income 122683
Depreciation expense +16370
Decrease in accounts receivable +5365
Increase in merchandise -8378
Decrease in accounts payable -9700
Increase in wages payable +1014
Net cash flows from operating activities 127354
Cash flows from investing activities:
Purchase of equipment -100735
Net cash flows from investing activities -100735
Cash flows from financing activities:
Payment of loan -13260
Stock issuance +18275
Dividends paid -16224
Net cash flows from financing activities -11209
Net cash flows 15410
Beginning cash balance 73840
Ending cash balance 79250

The real cash flow should be 5410, so I am 10,000 off. I've done this over and over again, and can't seem to find the issue. I hope that this at least helps. Good luck.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.