Fred Slezak presented the following comparative balance sheet: FRED SLEZAK CORPO

Question

Fred Slezak presented the following comparative balance sheet:
FRED SLEZAK CORPORATION FRED SLEZAK CORPORATION Statement of Cash Flows For the Year Ending December 31, 20X5 Cash flows from operating activities: $                      - $                     -                        -                        -                        -                        -                        -                        -                          - $                      - Cash flows from investing activities: $                     -                          - Cash flows from financing activities: $                     -                        -                          - Net increase in cash $                      - Cash balance at January 1, 20X5                   9,000 Cash balance at December 31, 20X5 $                      - ----------------- Noncash investing/financing activities: $                      - ----------------- Supplemental information: $                      -                          - Comparative Balance Sheet December 31, 20X5 and 20X4 Assets 20X5 20X4 Current assets Cash $          664,000 $               9,000 Accounts receivable              375,000               345,000 Inventories              150,000               160,000 Prepaid expenses                35,000                 25,000 Total current assets $       1,224,000 $            539,000 Property, plant, & equipment Land $          300,000 $            400,000 Building              700,000               700,000 Equipment              530,000               450,000 $       1,530,000 $         1,550,000 Less: Accumulated depreciation             (300,000)              (270,000) Total property, plant, & equipment $       1,230,000 $         1,280,000 Total assets $       2,454,000 $         1,819,000 Liabilities Current liabilities Accounts payable $          112,000 $            119,000 Interest payable                 2,000                          - Total current liabilities $          114,000 $            119,000 Long-term liabilities Long-term note payable                80,000                          - Total liabilities $          194,000 $            119,000 Stockholders' equity Common stock ($1 par) $          700,000 $            600,000 Paid-in capital in excess of par              800,000               400,000 Retained earnings              760,000               700,000 Total stockholders' equity $       2,260,000 $         1,700,000 Total liabilities and equity $       2,454,000 $         1,819,000 Additional information about transactions and events occurring in 20X5 follows: Dividends of $55,000 were declared and paid. Accounts payable and accounts receivable relate solely to purchases and sales of inventory. Prepaid items related only to advertising expenses. The decrease in land resulted from the sale of a parcel at a $45,000 loss. No land was purchased during the year. Equipment was purchased during the year in exchange for a promissory note payable. No equipment was sold. The increase in paid-in capital resulted from issuing additional shares for cash. The income statement for the year ending December 31, 20X5, included the following key amounts: Sales $       2,000,000 Cost of goods sold           1,200,000 Salaries expense              400,000 Advertising expense              150,000 Depreciation expense                30,000 Utilities expense                15,000 Interest expense                 5,000 Loss on sale of land                45,000 Income tax expense                40,000 Net income              115,000 Prepare Fred Slezak's statement of cash flows for the year ending 20X5. Use the indirect approach, and include required supplemental information about cash paid for interest and taxes. FRED SLEZAK CORPORATION Statement of Cash Flows For the Year Ending December 31, 20X5 Cash flows from operating activities: $                      - $                     -                        -                        -                        -                        -                        -                        -                          - $                      - Cash flows from investing activities: $                     -                          - Cash flows from financing activities: $                     -                        -                          - Net increase in cash $                      - Cash balance at January 1, 20X5                   9,000 Cash balance at December 31, 20X5 $                      - ----------------- Noncash investing/financing activities: $                      - ----------------- Supplemental information: $                      -                          - Fred Slezak presented the following comparative balance sheet:
FRED SLEZAK CORPORATION FRED SLEZAK CORPORATION Statement of Cash Flows For the Year Ending December 31, 20X5 Cash flows from operating activities: $                      - $                     -                        -                        -                        -                        -                        -                        -                          - $                      - Cash flows from investing activities: $                     -                          - Cash flows from financing activities: $                     -                        -                          - Net increase in cash $                      - Cash balance at January 1, 20X5                   9,000 Cash balance at December 31, 20X5 $                      - ----------------- Noncash investing/financing activities: $                      - ----------------- Supplemental information: $                      -                          - Comparative Balance Sheet December 31, 20X5 and 20X4 Assets 20X5 20X4 Current assets Cash $          664,000 $               9,000 Accounts receivable              375,000               345,000 Inventories              150,000               160,000 Prepaid expenses                35,000                 25,000 Total current assets $       1,224,000 $            539,000 Property, plant, & equipment Land $          300,000 $            400,000 Building              700,000               700,000 Equipment              530,000               450,000 $       1,530,000 $         1,550,000 Less: Accumulated depreciation             (300,000)              (270,000) Total property, plant, & equipment $       1,230,000 $         1,280,000 Total assets $       2,454,000 $         1,819,000 Liabilities Current liabilities Accounts payable $          112,000 $            119,000 Interest payable                 2,000                          - Total current liabilities $          114,000 $            119,000 Long-term liabilities Long-term note payable                80,000                          - Total liabilities $          194,000 $            119,000 Stockholders' equity Common stock ($1 par) $          700,000 $            600,000 Paid-in capital in excess of par              800,000               400,000 Retained earnings              760,000               700,000 Total stockholders' equity $       2,260,000 $         1,700,000 Total liabilities and equity $       2,454,000 $         1,819,000 Additional information about transactions and events occurring in 20X5 follows: Dividends of $55,000 were declared and paid. Accounts payable and accounts receivable relate solely to purchases and sales of inventory. Prepaid items related only to advertising expenses. The decrease in land resulted from the sale of a parcel at a $45,000 loss. No land was purchased during the year. Equipment was purchased during the year in exchange for a promissory note payable. No equipment was sold. The increase in paid-in capital resulted from issuing additional shares for cash. The income statement for the year ending December 31, 20X5, included the following key amounts: Sales $       2,000,000 Cost of goods sold           1,200,000 Salaries expense              400,000 Advertising expense              150,000 Depreciation expense                30,000 Utilities expense                15,000 Interest expense                 5,000 Loss on sale of land                45,000 Income tax expense                40,000 Net income              115,000 Prepare Fred Slezak's statement of cash flows for the year ending 20X5. Use the indirect approach, and include required supplemental information about cash paid for interest and taxes. FRED SLEZAK CORPORATION Statement of Cash Flows For the Year Ending December 31, 20X5 Cash flows from operating activities: $                      - $                     -                        -                        -                        -                        -                        -                        -                          - $                      - Cash flows from investing activities: $                     -                          - Cash flows from financing activities: $                     -                        -                          - Net increase in cash $                      - Cash balance at January 1, 20X5                   9,000 Cash balance at December 31, 20X5 $                      - ----------------- Noncash investing/financing activities: $                      - ----------------- Supplemental information: $                      -                          -

Explanation / Answer

Fred Slezak Corporation Statement of Cash Flows For the year ending December 31, 20X5 Cash Flow from opearating activities: Net Income          115,000 Add/(Less) non cash effects on operating activities Depreciation expenses            30,000 Loss on sale of Land            45,000 Increase in Accounts Receivables          (30,000) Decrease in Inventory            10,000 Increase in Prepaid Expenses          (10,000) Decrease in Accounts Payables            (7,000) Increase in Interest Payable              2,000            40,000 Net Cash provided by operating activities          155,000 Cash flow from investing activities Sale of land            55,000 Net Cash provided by investing activities            55,000 Cash flow from Financing activities Proceeds from issue of Stocks          500,000 Dividends Paid - Common Stock          (55,000) Net Cash provided by Financing activities          445,000 Net Increase in Cash          655,000 Cash Balance at Jan. 1, 20X5              9,000 Cash Balance at Dec 31, 20X5          664,000 Noncash investing/financing activities: Issued note payable for equipment            80,000 Suplemental information Cash paid for interest              3,000 Cash paid for Taxes            40,000

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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