The following comparative balance sheets were prepared for The Bush Boys Corpora

Question

The following comparative balance sheets were prepared for The Bush Boys Corporation. The Bush Boys Corporation Balance Sheet AS December 31, 2014 2015 1 Cash 5,870 10,000 Marketable Securities Accounts Receivable Inventory Supplies Prepaid Expenses Long-term investment Property, Plant and Equipment 25,000 75,600 39,500 4,700 50,000 75,000 40,000 5,000 8,000 8,400 123,000 3,500,000 (660,000) 1,250,000 120,000 3,000,000 (600,000) 1,000,000 Accumulated Depreciation Building under Construction Total $4,382,070 3,708,000 $43,940$45,000 Accounts Payable Notes Payable Interest Payable Salaries and Wages Payable Bonds Payable Common Stock Paid-in Capital in Excess of par value 100,000 10,880 63,320 500,000 150,000 10,000 63,000 1,000,000 100,000 1,990,000 2,840,000 Retained Earnings 673,930 500,000 Total $4,382,070 $4,382,070 3,708,000

Explanation / Answer

The increase and decrease in assets and liabilities when compared to the year 2014 with 2015 2015 2014 Diff. Cash $                    15,870 $               10,000 $            5,870 Marketable securities $                    25,000 $               50,000 $        (25,000) Accounts receivables $                    75,600 $               75,000 $                600 Inventory $                    39,500 $               40,000 $              (500) Supplies $                      4,700 $                  5,000 $              (300) Prepaid expenses $                      8,400 $                  8,000 $                400 Long term investment $                  123,000 $             120,000 $            3,000 Property, plant and equipment $              3,500,000 $         3,000,000 $        500,000 Accumulated depreciation $               (660,000) $           (600,000) $        (60,000) Building under construction $              1,250,000 $         1,000,000 $        250,000 Accounts payable $                    43,940 $               45,000 $            1,060 Notes payable $                  100,000 $                         -   $     (100,000) Interest payable $                    10,880 $               10,000 $              (880) salaries and wages payable $                    63,320 $               63,000 $              (320) Bonds payable $                  500,000 $       10,000,000 $    9,500,000 Common stock $                  150,000 $             100,000 $        (50,000) Paid in capital in excess of par value $              2,840,000 $         1,990,000 $     (850,000) Retained earnings $                  673,930 $             500,000 $     (173,930) The Bush Boys Corporations Statement of Cash Flow Cash flow from operating activities Net Income $                  593,930 Add: Depreciatiion $                    60,000 Gain on sale of marketable securities $                    (5,000) Investment income $                  (15,000) Increase in salaries and wages payable $                          320 Increase in accounts receivable $                        (600) Decrease in inventory $                          500 Decreaes in supplies $                          300 Increase in prepaid expenses $                        (400) Increase in accounts payable $                    (1,060) Decrease in interest payable $                          880 Cash flow from operating activities $             633,870 Cash flow from Investing activities: Sale of marketable securities $                    30,000 Long term investment $                    (3,000) Property, plant and equipment $               (500,000) Building under construction $               (150,000) Investment income $                    15,000 Cash flow from Investing activities: $           (608,000) Cash from financing activities Principal of bonds paid $               (500,000) Dividend paid $               (420,000) Issue of common stock $                    50,000 Excess of par value $                  850,000 Cash flow from financing activities $             (20,000) Cash flow during the year $                  5,870 Opening cash balance $               10,000 Closing cash balance $               15,870

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